Ideally I'd like to see a single secular state too, but as boykosaurus got at, its unlikely considering Israel's almost complete influence over affairs, at both a local and international level. Simultaneously, the current condition of any Palestinian representative body is unfortunately a sorry one. I personally think Fatah have a better chance because of Arafat's old 'glory days' (not that he acomplished much in the end) but judging by the last few years it looks at though Israel is about to swallow and comfortably digest what is left of Palesitne's Swiss cheese.
I think this is tragic considering the loss of life, culture and rights of Palestinians. I know those remaining in Palestine will not give up, and rightly so, but as much as it pains me to say it, I cannot see them winning more than a few minor battles.
The entire situation is a mess, and its really hard to express a coherent opinion on it. Sorry is this is really convoluted and vague, but it is rather late. I'd be interested in reading what others too think of the situation.