This is the accepted wisdom over at State, but it is not only wrong it is 180 degrees wrong.
There will never be an independent arab West Bank and there will never be an independent Gaza. It will never happen.
The arab West Bank is not viable as an independent state, and wishing it were so will not make it so. Separate from Israel, separate from Jordan, where are its markets? Where is its industry? What is the basis of its economy?
It is doomed to be what it is, an outlaw enclave ruled by outlaws and populated by people who have consented to be ruled by outlaws. They are complicit in their own misery. Anyone foolish enough to invest there in any productive enterprise has already lost his investment, and won't be back. The enclave lives by US/UN/EU subsidies, which fund its terror movements which are its real and only economic good.
Time wasted pursuing the fantasy of a sovereign west bank is just time wasted, which in that part of the world translates directly into dead Israeli innocents and dead deluded arabs.
Gaza, which at least has a coastline, could be the Monaco of the eastern Med if it was populated by almost anyone other than arabs. But Gazans are not Frenchmen, and it will never be able to stand alone.
If these territories are to remain arab, they need to be returned to their mother countries, Jordan and Egypt. Neither one wants them, it should be noted. Alternatively, they could be cleared and annexed, which Israel does not want to do, which would only be the result of open warfare. The status quo guarantees continuous low-level warfare. Continuous low-level warfare is what "peace in the middle east" looks like. Get used to it.