The status quo exists as a result of 70-something years of history and has been determined, to a greater or lesser degree, by US foreign policy in the region. That policy has always been based on what the US has considered in its own best interests, no matter how horrible some of its local allies are.
Whatever happens I can't see the US changing its view that having Israel as a powerful regional counterweight, along with Saudi, to Iran is in the interests of the US, no matter what Israel does.
To my mind, the central role in whole shitshow has always been played by the US, who've enabled Netanyahu for the past 20-odd years. We can only hope that he's removed by the forthcoming elections (in October, I think), though I'm not sure whoever replaces him will be much of an improvement, and I certainly don't see things getting any better for anyone in the region while Donald Trump is still in power.