The situation as I see it:
Israel and continually gone against prior agreements and keep taking more and more Palestinian land, because they think God said it was theirs.
Palestinians rightly are angry, not just about the land but by effectively being in a prison (Gaza) and a substantial number of them have lives that hinge on absolute hate of the Israelis (the Jewish ones).
Israel don’t want a two-state solution with an enemy right next door, who will continue (with the support of Iran) to keep attacking and terrorising them. Israel (half of the population) loves the expansion into the West Bank by “settlers”.
This is what Israel will bring to the table, and a future Palestinian leadership will agree to:
West Bank continues as normal. Any land without houses is free for Israelis to build on, and the West Bank will effectively be a part of Israel, and existing Palestinians can continue to live there, as they do now.
Gaza becomes its own state. It will have full access to the outside world, via the sea and air. Land connections and workers crossing the border will continue as before. However, terrorism needs to end. An international task force will be there – potentially forever – to run democratic elections, co-ordinate aid, and to shut down any terrorism. No anti-Israeli sentiment is allowed. No murals of martyrs. All history taught in schools is carefully worded and monitored. The end result is peace and freedom with hate for their neighbours snuffed out. Any rebels are deported, somewhere.