An "Israeli victory" would like present day Israel sans most of the West Bank settlements, surrounded by Arab States that look like a modernized Jordan; at least moderately responsive to the material desires of its citizens. Not that much to ask except when you put it in context.
Well, that possibility was offered to Yasir Arafat and he turned it down flat.
Realistically, your version of an "Israeli victory" will never take place for the simple reason that the Arab leaders have no incentive to modernize or install democratic reforms. If they did, there would be no need to remove the Jewish "settlements".
IMHO, you are ignoring the root cause of the conflict - Arab hatred towards the Jews. Is it deliberate?