Er, it was tried in 1948 in Palestine (remember the original plan: one land two cantons with Jerusalem internationalised) - it didn't quite work as both sides started fighting. But for other more successful examples let's look at Yugoslavia (modern day 1945-90: civil war, tens of thousands dead); Lebanon (came to the brink in 1958, and then civil war 1975-92 - tens of thousands dead and displaced). Cyprus (lasted four years before it effectively split: again thousands dead). Oh and then there's Belgium, which is on the verge of splitting on ethnic lines. One state solutions are a fast route to civil war and more deaths than anyone could imagine!
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Turkish soldier, 15 militants killed in clashes between security forces and Kurds (Reuters)