I know everyone has an opinion on it. The anti-semites usually start with that Israel shouldn't have been crearted. That is moot, since it is created and nothing short of nuking Israel will change that (which would cause Israel to nuke half the Middle East if it came to that). Also a single state seems out of the question, since both sides would more likely kill each other - think Japanese fighting fish when you remove the barrier. Status quo is unacceptable. So here is what I think.
The main stopping blocks are: (1) Refugee situation, (2) Jerusalem/East Jerusalem, (3) The holy sites, (4) the Settlements, (5) Terrorism, (6) Acceptance by the Arab League (something they said they would do) &
(7) Arab Israelis.
(1) Refugee Problem:
The law of return has to be restricted to the future Palestinian state. No rational country would take on millions of self-proclaimed enemies of the state. Israel and the West would compensate these refugees to help them get on their feet.
Jerusalem status should be up for a vote. Each section of Jerusalem votes if they want to be part of Jerusalem or Al Quds. I really don't know the demographics of the areas, but I assume the Jews pick Jerusalem and the Arabs will pick Al Quds. Each side compensates the displaced population when the vote results are determined.
(3) Holy sites:
I will admit I don't know all of them. But I assume the dome on the rock mosque will end up in Al Quds and the Western Wall will end up in Jerusalem. Both make a commitment that in 1 year they open up the holy sites to visits by the other sides, if its feasible.
Some settlements on the West Bank are kept by Israel, but equal land is given to Palestine in exchange, such as the land bridge from Gaza to the West Bank and some of the heavily Arab neighbors on the border.
(5) Terrorism & violence:
Both sides sign a commit to the security of each other's nation and to combat terrorism. In addition both agree to recognize and respect each other's sovernity. Both sides sign trade agreements and establish embassies in each other's capitals.
(6) Arab Recognition:
The Arab league has stated they would agree to do this. Formally recognize Israel, lift the sanctions against Israel, accept from and establish embassies in Israel and establish trade agreements with Israel. They also accept an Israeli representative to the Arab League. With an Arab population of 20%, I think they qualify. Obviously the representative would be an Israeli Arab MK!
(7) Israeli Arabs:
Force them to make the choice of which country to become a citizen of: Israel or Palestine. If they choose Palestine then they are required to move to Palestine at their own expense. If they choose Israel then they must formally file and accept Israeli citizenship.
Please no coming back with anti-semitic comments, genocidial talk. the plight of the Palestinians, etc. It is about solutions not about past problems!