This proposal is backward. It's an attempt to move things as to how they were in 1967, and partially before 1948. It is an attempt to turn back the clock to some imaginary period when all was right and just. The problem is, time has marched on, and there is no going back. The only thing worth working towards is a plan that works. This plan just doesn't. It's a thinly veiled scheme to reduce Israel's Jewish majority in an attempt to destroy what we know as the Jewish state.
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from the article: Peace Plan: Trading settler Israelis for refugee Palestinians