Because everything I see happening is making the situation worse. Both sides continue to be radicalized. The world media, Arab street and the UN are obsessed with Israel and Zionism. Antisemitism is spiking worldwide. Jewish students are being threatened at colleges here and in Europe.
The path to 2SS isn't going to come from a hail Mary attempt at a peace deal. It has to be done in stages starting with changes to Palestinian society. You mentioned that in your vision of a 2ss settlers would be given an option to stay and become citizens. I agree with that, but it can't happen because Israeli Jews have no physical safety in the WB. Recently an Israeli was in a car crash, he was taken to a hospital in Ramallah I think. Members of IJ went to the hospital, took him off life support, letting him die, and then contacted Israel for a prisoner swap. Last week an a Jewish Israeli took a wrong turn and ended up in the WB. A mob formed and attacked his vehicle, he fortunately was able to escape.
This isn't a population that's ready to accept the existence of Israel or Jewish self-determination. Quite the opposite in fact, with the full support of the Muslim world. The world just makes excuses for them all the while holding Israel responsible/accountable for pretty much everything.
Maybe democracy in Israel will fail. What then? Will that make peace more likely? Of course not. Will Israel still exist? Of course it will, and they will be ruled by a strongman just like every other country in the region.