Most pragmatic and moderate Palestinians who seek a 2-state solution understand why there cannot be a return of refugees to within the green line. They may not be able to say so because of their domestic audience but if there was a resolution based on a return to the 67 lines with agreed land swaps I believe this would no longer be a significant issue. So why is it now? (1)Prior to the six-day war Israel perceived itself to be a homeland for Jews, so why is it such a major issue now? Netanyahu needs to find reasons not to negotiate. (2) The Palestinians have to adopt a more extreme position for domestic consumption because the Israelis are not prepared to talk about giving them a meaningful state. Give the Palestinians a state and I believe the r-o-r will diminish as an issue as the Palestinians themselves focus on buidling their country. If I am wrong and they try to flood Israel-proper with their own people Israel will have right and justice on its side to take sufficient measures to stop this from happening. The answer is for the Palestinians to get their own state. The right of return will then be an issue which (1) I do not believe they will pursue any longer (2) if they did, they would find themselves isolated on the international stage and, I would argue, impotent to do anything about it.
from the article: Netanyahu says there's no solution to the Israeli-Palestinian conflict