It's no longer clear that a two-state settlement -- at least one that socialists could support -- is feasible anymore. This the conclusion that most Marxists in the "third camp" condition have come to. For example, Sam Farber in Jacobin:
"The current military control of the West Bank and Gaza has sharpened the perennial contradiction between democracy and Zionism, in Zionism’s efforts to maintain the ethnic and religious definition of Israel and thus to limit the number of Arabs — a desire explicitly manifested by David Ben-Gurion. In light of the practical demise of the two-state solution at the hands of Israel, the Zionist oppressor state by definition cannot accept the only remaining desirable alternative: a fully democratic and secular binational state comprising Green line Israel, the West Bank, and Gaza with full equality for Palestinian Arabs and Jews."
I don't know if a binational state of all historic Palestine is more likely than a genuine two-state settlement. I wish socialists in general would simply be clear that both Palestinians and the "Hebrew nation" inside Israel (as Matzpen put it long ago) both have the right to national self-determination and leave it at that, without exhibiting absolute certainty over what form that can take.
Also, it's an error to focus on Hamas -- a reactionary organization -- without mentioning Israel's role in fomenting Hamas's existence in order to render secular Arab nationalism and official Communism irrelevant as trends in Palestinian politics. And Israel's crimes against Gaza exponentially dwarf those of Hamas firing rockets into "Israel proper."
I realize that the UK Left is overrun with "destroy Israel" types but the AWL tends to bend the stick a bit too far the other way.