I'll give you my thoughts as a Palestinian with Israeli citizenship (part of the Arabs of 48 - the ones who stayed in their villages/towns after the war, in Israel's side of the Green Line).
I believe that the 2 state solution isn't just a solution, it's the only one that can work. Sure there are lots of people on both sides that want peace, but there are too many who hate the other side, that I just can't see 1 fully democratic state form. As an Israeli politician said before, if Israel absorbs the Palestinian territories, it'll either stop being Jewish (Since it'll quickly turn into an Arab majority), or stop being Democratic (Become an official apartheid system).
I blame the hate on religious/ethnic fanatics. I've yet to meet somebody in my daily interactions with Jews in technological areas that thinks of me as a "lesser" person because I'm an Arab, but you can bet I've met some in other areas.
I think Jerusalem should be joint control.
