If, by the state of Israel you mean the Israel that was established in 1948 by UN mandate and the UN recognized borders that existed in 1967 prior to the Six Day War, then yes, that Israel has the right to exist.
Of course, one big problem is that Israel doesn’t seem to want that Israel any more. It wants acceptance of a right to exist on terms dictated by itself only. It has never formally recognized the 1967 borders itself. So maybe you ought to say which Israel has a right to exist.
[quote=estesbob]If so what is your proposed solution to the problems in the area?
The 2-state solution as proposed by the UN is my proposed solution. However, that unfortuantely is becoming less and less likely as time goes by.