Avi, my friend. Before 1967 there simply was not a consensus in the Arab World for accomodation with Israel. Simple as that. When the PLO was formed and began acting quazi-independently, the stated goal of the Palestinians was a ONE secular state with equality for all citizens, ie, the 1 state solution, which by the way, does not mean "Jews being pushed to the sea" as the Israeli leadership successfully brainwashed world Jewry to believe. Now, in 1988, the PLO gave up the 1 state solution and agreed formally to a TWO state solution. At least since then, it has been fairly easy to show that Israel is indeed the prime obstacle to peace.
Woman moderately wounded by firebomb thrown at her car in north J'lem (Haaretz)
from the article: In the role of party pooper