He is entirely correct. The idea that Israel will eventually "teach" the Palestinians how to behave by oppressing them is absurd. They won't give up on the fight for a nation state, no more than Israelites will. So what is left? A peaceful solution or a violent solution.
Potential peaceful solutions are the dissolution of the Jewish State, by absorbing Palestine and extending full citizenship to it's citizens, or the recognition of the Palestinian state and whatever government they choose.
The violent solutions are the destruction of Palestine, by forcing them out, or the genocide of Palestinians.
You've ruled out the Palestinian state, as have most Israelites. You can't force them out without also destroying yourself.
That leaves two choices. Absorbing the Palestinian state, or the mass murder or removal of millions of people. Either way, your current strategy is unsustainable and to your own detriment.