Israel has won in the sense that a two state solution is no longer an option. There's not enough land left to give the Palestinians a viable state of their own. So that leaves two options. A continuation of the status quo with Palestinians living under eternal occupation and apartheid surrounded by growing settlements. Or a single state with equal rights for all.
The single state solution is idyllic, but disfavored by both sides because there is shared fear of the country going the way of Lebanon afterwards - devolved into factionalism with zero sense of shared nationality.
