Jane, you are right that acceptance of the two states for two people is the real crux of issue, however, recognition by Arabs of Israel as the "Jewish" national homeland is actually important for the peace agreement to hold. If the Jewish issue is avoided, I promise you the conflict will not end. The new Palestinian state and the left-wing will freely continue to use the UN, etc. as a forum for declaring Israel an aparteid state to be dismantled. The character of Israel will suffer relentless political assault. No. The Palestinians must (at least by the end of negotiations if not at the beginning) concede the issue and show that they will not continue the conflict by political means.
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Mortar shell fired from Gaza at IDF force operating by the border, no injuries reported (Haaretz)
from the article: Peace is not child's play