In first solution - it depends. There is also option, that Islam ceases to exist(all according to islamic scriptures). Palestinian Arabs in that situation can c

In first solution - it depends. There is also option, that Islam ceases to exist(all according to islamic scriptures). Palestinian Arabs in that situation can convert to Judaism or whatever and anyone who would be able to find Jewish ancestry who were converted can probably easily find those roots. Though in that case, borders of Israel would include more than Palestine. The conflict from Islam POV is about which religion is better. That is biggest weakness of Islam in the region, where Jews were living in Medina and Mecca long before Islam was arisen and where majority of Arabs were Christians up till Middle Ages. So, even if it takes another 1000 years, I would put money on that Jews will survive, while Islam will be long forgotten history.