For all those who ask me from time to time what my solution is, this is it: the 1967 borders, with 1-for-1 land swaps to bring the bulk of major settlements within Israel, territorial contiguity for the Palestinians, and a shared Jerusalem. Palestine might be demilitarized to a small extent, but not without control over it’s own air and waterways. The settlements by and large come down, and if it takes economic incentives to bring the settlers home, then it’s a price more affordable than blood.
Regarding Hamas, a unity government may be necessary, otherwise Fatah would appear to be leaving 1.2 million of its people behind. Hamas needn’t sing the Israeli national anthem, it need only hold its ceasefire reasonably. Once a negotiated final agreement is signed, the fuel for daily villianizing Israel will be greatly undercut.
It’s not that simple, but these are the broad strokes. Those who don’t agree likely don’t believe (a) Arabs can ever be trusted, (b) Fatah is a moderate Godsend to the— conflict, (c) Hamas’ leaders are pragmatic even if they’re fundamentalist, or (d) the occupation is bad enough but soon it will unite world opinion against Israel as an apartheid state.