Whoever you blame for this, it is clear - a Palestinian state, even one hopelessly segmented between jewish-only settlements - is no longer forseeable.
That being so, its time we started understanding the conflict as well as the plight of the Palestinians, within this reality: that there will only ever be one state, consisting of Israelis and Palestinians.
Currently this state is undeniably an apartheid state - one population has citizenship and rights, the other population does not, and are relegated second class status. Hence an apartheid state.
The international community must treat this apartheid state exactly the same way they treated South Africa during their apartheid - by demanding that they end the racist and discriminatory policy of granting rights to one population of the country, but not the other.
The point being, that the policy of supporting a two-state solution is now effectively a copout - it not only ignores the facts on the ground, but more importantly, it serves as a convenient excuse to ignore the injustices of the apartheid situation: "that injustice will be sorted as soon as we get the two states up and running" - so no need to deal with it now.
Start understanding Palestinians as non-citizens of the Israeli state - and as such, a people with second class status. Start asking the Israelis - "if you have no intention of granting this population their own state, why aren't you giving them equal rights? Why aren't you granting them all citizenship?"