They applied to the UN to be recognised as a State. However the US intends on vetoing that. However even if they were recognised as a State, they would still need to go through process of law to get their state. Since that meeting Netanyahu has announced more building which obviously suggests Israel is not intending on a Palestinian State. You are not going to waste money building if you are going to vacate the area. In addition Net is intending on changing the laws and make illegal outposts legal.
Law bent in favour of settlers to legalize illegal outposts | Jews for Justice for Palestinians
These are clear indications that he is moving in the direction of taking more Palestinian land rather than moving towards a Palestinian State. His speech to the UN Congress and applauded by them spoke of his right to all of Judea and Samaria - that is the West Bank. That is legally the Palestinian territory.
The settlements are what makes a Palestinian State impossible. They are illegal by International Law. The PIJ recognised this and a couple of years or so ago warned the EU that if settlements were not stopped and indeed dismantled a two state solution would be impossible and a one State would be the only possible outcome.
http://www.pij.org/pijpapers/settlements_pijpaper.pdf
If no state is possible because it is full up with settlers then the Palestinians have no alternative than to ask for the land that they live on to be a State for all it's citizens.
The Palestinians have been occupied for 44 years. Well the longest time in recent History. They were promised a State 18 years ago. Israel does not want a one state solution because she wants a Jewish State but if Israel wants all of the land then she will either have to accept the Palestinians or kill them and/or forcefully evict them. As I see it, that is blunt reality.