This is rather unsurprising.
I favor a 2 state solution, one along the other ethnic separations out there, which means parts of pre-1967 Israel will become a part of a future Palestinian state, because at it’s core what is going is is negotiations over ethnic land divisions, and under those terms, some areas near the West Bank, and parts of the Galilee which are overwhelmingly Arab, would necessarily move in that direction.
Whether or not this sort of separation occurs, full rights should be extended to non-Jews, by which I mean something along the lines of the US civil rights act, prohibiting discrimination on the basis of ethnicity.
Another full right that should be extended to the non Jewish (and non Druze) population in Israel is conscription: As it stands now Arabs are not required to serve, which, among other things, prevents the formation of social ties that normally occur during mandatory service, and which frequently help in later life. (aka “Old school ties).
As to the veto, I am increasingly of the opinion that any foreign involvement in the diplomacy between the Palestinian government and Israel is counter-productive, because it leads the negotiators to spend too much time playing to outside entities, whether it be the US, UN, EU, or Arab governments, and not enough dealing with each other.
One reality here that needs to be accepted is that at some point in the next few decades, Hamas will win an election (they already have) and take power (they weren’t allowed to after the election).
This may be scary, but the current principals in this matter need to suck it up and accept reality.