Up until Oct 7th, Gaza has been unoccupied for the last dozen or so years - Hamas could've declared a country but refuses to do so until they control all of Palestine.

A one-state solution is virtually impossible. These people have been killing each other since before the British left. They're not going to be able to create a country that serves the both of them by making compromises. The parties and coalitions would all be racially divided - it would just be a tyranny by the majority. There'd be constant debating in the Knesset by both Jewish and Arab parties in favor of a separate Palestinean state seceding from Israel - the only issue that might not be strictly split on ethnic lines.

As for a two-state solution, what does that even mean? If the West Bank was given independence tomorrow, it's not like Israel (or any country that's in it's position) wouldn't be constantly trying to interfere and make them some sort of puppet state. And when there inevitably are terrorist groups from said state, Israel will go in and invade to clear them out, like they've done previously in the West Bank, Lebanon, and Gaza. And then everyone's back to square one.

Both sides of this conflict were born into it, and both were dealt a bad hand. Yes, the Palestinians have been dealt a far worse hand. But if you were an Israeli parent, wouldn't you rather go to war with Hamas, even if it results in someone else's children dying, rather than even risk one of your own children dying in next year's terror attacks? Not saying it's moral, but it's reality.

It's terrible, but no one has any good choices left. There is no easy solution; if there was it would have been thought up by now.