The situation has already turned ugly, the Hamas attack was a boon for Netanyahu in much the same way that Hitler's rise was a boon to the flagging (and fairly politically useless) Churchill. He won't be able to drag the US into a war, but I'm not convinced he needs to be able to. Iran seem relatively toothless in the same way the Russians were after they invaded Ukraine.
I don't think the solution would've been permanently buried. I think what you would've seen under the Abraham Accord was a de-escalation of tension and the potential for economic movement free from Hamas. It's become very vogue to call Gaza 'an open air prison' - but let's remember the place (had) hospitals, schools, was a place that had flights going in and out and had a telecoms network. Most of the investment into Gaza went to funding the lifestyle of Hamas leaders (and their families) in Qatar or into building military tunnels. I think with Saudi influence and diplomacy there could've been a gradual toning down of the rhetoric and a move towards stability. Much of the Arab world doesn't want anything to do with Palestine - there hasn't exactly been a rush to offer support to refugees has there? Egypt, Lebanon, Iran and Iraq all have restrictions in place. Much of that is due to the belligerence of Hamas. I don't think this would've buried the question forever, but I think if you create a stable place for people to live these questions often go away. The Irish population (bar a tiny minority) aren't overly fixated with British imperialism anymore, in part because their lives became much more economically attractive within the EU. Prosperous happy citizens don't want to fight about strips of land in the desert - right wing lunatics with blood feuds will do this.
As I said in the article, I think you can only solve this by getting rid of either Hamas or Israel. I think getting rid of the former is the only viable solution. I think there needs to be an internal reckoning within Israeli politics too and I think that will come. However, it won't come whilst the far right can point at rising anti-semitism around the world and use it as propaganda and fuel for their cause.