Somehow I don’t see Netanyahu giving up easily. While he has little support in Israel now much of the population there sees things the same way he does. They want the Arabs cleaned out from Gaza and the West Bank. Will a new leader be any more amenable to compromise? It would require serious pressure from the US but politically the US isn’t there yet. But our support for Israel is working against US interests from an international perspective so eventually something will have to be done.
The world would create a temporary unified army like what was done in the Gulf Wars. They would then give Israel an edict to evict all the Israeli settlers from the West Bank and East Jerusalem by a set time.
If the Israelis failed to act in time, then the army would go in and enforce the 1967 borders, then leave the UN forces to manage and maintain the borders and order.
It wouldn't be pretty, and there could be some death and destruction during the process, but it could be the best solution over the long run.
There are only three other possible solutions that I can see:
1) Status Quo: Endless series of tit-for-tat assaults
2) Israel/Palestine Cage Match: No outside countries allowed to assist. Whoever wins, gets everything.
3) WWIII
Israel can compromise down to being 10 sq. km size and Hamas, etc., will still fully intend to erase it. Neither would Iran’s mullahs’ long term goals have changed.