I can see some wiggle room on the refugees that were denied their right of return getting compensated monetarily in return for the full and complete withdrawal of Israelis from all lands Israel occupied in 1967 as demanded by UNSCR 242. Once the Israeli settlers are removed and sent back home to Israel proper, the former Jewish only settlements can become homes for the refugees and peace will have a chance. While that is somewhat unfair to the Palestinians whose homes, farms and villages were stolen and destroyed by Israel, they do get back part their homeland and it will be finally free of Israeli oppression and occupation. The Israeli get what they've wanted, security and peace with its neighbors, but will have to deal integrating the violent and radical settler elements with Israeli society.
Firebomb thrown during demonstration in northern Israeli town of Umm al Fahm (Haaretz)
from the article: PM willing to start dialogue with Saudis, join regional summit