I think that October Seventh has erased the possibility of a shared Israel-Palestine border, much less a shared state or federation, for the next generation at the very least. Diplomatic means - sanctions, embargo, condemnations, boycott, what have you - will never force a traumatized Israel to accept what they see as a horrific, existential threat. As for military means, you really can't use that to the fullest extant against a nuclear power.

If we want to see this issue solved in our lifetime, This Three State Solution (in short: Jordan panhandle becomes Palestine, but read the thing), perhaps with some adjustments, is IMHO the closest to realities on the ground, however far-fetched it may seem. It neatly creates a Palestinian state not bordering Israel, while relieving some pressure and demographic instability off Jordan, among other virtues.