There certainly is rhetoric around the ethnic origin of some Israeli citizens being Northern European rather than middle eastern, so perhaps the original claim has some validity.
In that, given a few years/decades of a two state solution, you'd have a partition occur, whether by force as was in India/Pakistan, or by more natural processes over time.
Honestly, I could see a partition occur as a condition for a two state solution. One side for the muslims, one for the jews.
I guess I should amend my comment to say theocratic ethno-nationalist / ethno-religious states, but I am likely messing up my greek/Plato (?) here. Suffice to say, the state of Palestine would have a super majority of muslim Palestinian citizen voters (currently-ish 87%, ~6M people total, though hard to define really), and the state of Israel would have a slight majority of jewish citizen voters (currently 48% jewish, 48% arab, ~14M people total, but Israeli Arab enfranchisement is a thing). Though 'steady state' numbers would likely shift the voting blocs towards the representative religions due to some partitioning as I described. Just FYI, there are about 6.3M jews and 4.5M muslims in the US currently.
The total numbers of jews and palestinians that would be 'in theatre' is hard to determine, but think about 8M jews and about 9M palestinians for guestimations.
So, I think I'm on pretty stable ground calling the likely resultant two state solution an ethno-religious solution. Other commenters are right in that the definition of 'nation' is a bit difficult with these two groups.
Look either way, the two state solution is like, maximally bad. Having these two people with their histories and hatreds literally sharing walls is just crazy as it stands. Then giving them both access to the global arms market, let alone just Israel, is so crazy.
And no, I haven't the foggiest idea what the hell to do. No one does.
