The Israeli/Palestinian conflict has had its ups and downs for many years now. While there have been movements and improvements towards peace, there are still a few points left in the final status talks that need to be decided on. These are the status of Jerusalem, the status of refugees and their right to return, borders, and water. Until these are settled, there cannot truly be peace in this area.
Currently, there does not seem to be much hope in resolving these final points in the Israeli/Palestinian conflict. I agree with the realist idea that in order for these final points to be agreed upon, there needs to be some major act of violence or terrorism to motivate both sides to come to peaceful agreement. The people in Israel have been living in a political standstill and have no reason to change anything without a big event pushing them to change.
Although it is misguided to hope for an act of violence or terror, I do believe that this is what will drive change in this state. The forces for agreement need to be overwhelming coming from both sides. A major event is the only reason I see being probable that will lead to both sides searching for resolution.