I will again shill my theory that Israel will align itself with Russia in the coming years.
That would surprise me. Putin has his eyes on Tamar and Leviathan, and he doesn't want to buy it. It's in his best interests to help the Arab states and attempt to push the clock towards doomsday, then swoop in and claim the wreckage.
Assuming anyone more favorable to Israel than Obama (and this includes Clinton, Warren, Biden, or most other Democrats) takes office in 2.5 years, the status quo will likely resume.
As for the thread itself, no one here could seriously think that Hamas being legitimized as the Palestinian government wouldn't have massive repercussions. Israel has basically established this as a red line.
What repercussions? Israel would have been building more settlements regardless of whatever the Palestinians did. All the new Palestinian government did was give the Zionists yet another excuse for what they wanted to do. But they would have done it anyway even without any excuse. That's precisely why the PA has essentially given up on negotiating with Israel, they have absolutely nothing to gain from doing so.
Hypothetically, is it even possible for the area of Israel/Palestine to support two states? I mean, it may be that is is only possible to support one real state and one "Bantustan" and there is no room for compromise.
This is certainly a tough situation; I'm glad I'm not the one who has to make these decisions.