Isratine might not be a good idea
That is, not as a new name.
Yesterday, I have visited the honoree consul to Luxemburg, Mr. Prof. Miron Izakson (מירון ח. איזקסון), who has generously accepted my request for an urgent meeting over a private concern.
We have also discussed shortly about some of the current conflicts in the middle east, including the electoral system.
I have mentioned the "Isratine" idea of Mr. Colonel Mu`ammar Qadhafi, who has established the Jamahiriya system in Libya.
Yet, I have also mentioned an issue, with the man who has suggested it.
Isratine
Isratine is a portmanteau of the words Isra(el) and (Pales)tine.
The idea of a new state called Isratine was depicted by Mr. Qadhafi in his book "The White Book", and also has a chapter of it in his book "The Green Book".
While the idea of Mr. Qadhafi is the most practical that can be, it probably would not be a good idea, at least not by the proposed new name, mainly because the same man to create, and thereby patronize, this idea was the same man to criticize organizations of a subject nation.
A Different Name
The names "Bosnia and Herzegovina", and "Trinidad and Tobago" are formal recognized names of a sovereign territories, and thus a new name "Israel and Palestine" might be a better choice to name the new unified state.
Conclusion
If you intend to promote an idea concerning to certain subjects, you should be neutral, and not criticize a subject nor its own subjects, even if your criticism is justified.