Okay, I thought there was something weird when you wrote Cato Institute right next to imaginative and intriguing. Leon Hadar argues for a one-state solution.
… continues: Indeed, there is that twilight zone of Middle Eastern democratic fantasy where the Wilsonians on the Right and the Left find common ground. And so on. It is interesting and even imaginative, though. Such as:
the political power of American Jews, the memories of the Holocaust, and the rising anti-Arab sentiments in the West would allow even a diminishing majority of Jews to dominate the one state, to continue expanding Jewish settlements, and eventually to overpower the Palestinians. To put it differently, the South African conflict ended with the surrender of power by the defeated Afrikaners. There are no signs that Israeli-Jews are about the follow their example.

There has always been and always will be only one solution. Courage. Both sides are cowards. Israel puts up fences and attacks the Palestinians with their big army because they are afraid of suicide bombers. Palestinians run in fear from the big army, and rather than unite against their enemy they have a select few do suicide bombings. Both sides are unproductive and only continue to perform actions that make themselves look bad.
Let’s say that Palestine still kept all their political demands in place, but ceased all stone throwing and suicide bombing. If the world saw Israel continuing its current course of action it would make them look very very bad. There would be an obvious bad guy and good guy in the world view. Palestine would get internation support and its demands would be met.
The same works both ways. Let’s say Israel just stopped building its fence and stopped rolling out its tanks. If the palestinians continued to blow up buses and restaurants it would look really bad. It would become obvious that Palestine is the bad guy and the world would support Israel. The end.
The problem is that nobody has the courage to just die. New Hampshire says “Live Free or Die”. The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. People are always increasing security nowadays, the problem is that the security is illusionary. Never will it be foolproof, so why bother. Think about it, one side takes the hits and stands tall, the other side just keeps punching but never knocking them down. Have you ever seen a fight where one guy just beats the heck out of someone who doesn’t return punches but keeps standing up for more? Guess who looks good and who looks bad? The reason we have this problem is that both sides look bad now. Israel and Palestine are those two kids that got sent to the principles office because they can’t stop kicking each other. If tommorow one heeded the principals words and the other didn’t only one would be punished.
Also, it is obvious that if both sides follow this plan of stopping offense you would have peace by definition. No more killing is the number one goal here. The other stuff is far less important.