It is not workable and will lead to civil war in this supposed "utopian" bi-national state. Bi-national states generally do not work, even in "enlightened" Europe. Czechoslovakia was one state, now it is two. Yugoslavia was one multi-national state, now it is six after a horrific civil war. And from Belgium to UK to Canada to Spain there are strong national separatist movements seeking to break away and create independent states. This is because national groups are always competing for power share and cultural dominance. In the Middle East this has led to the ongoing sectarian violence between Sunnis and Shi'ites. Christians are being slaughtered in Egypt, Lebanon, Syria and Iraq. The only thing a "return" of the descendants of the 1948 refugees will bring is civil war. To think otherwise sheer utopian dreaming. NO! to the so-called return. Yes to resettlement and compensation on a case-by-case basis that also includes compensation for the 99% of Jews from Arab countries ethnically cleansed by Arab governments.
Israeli moderately wounded in stabbing attack near West Bank settlement (Haaretz)
from the article: A utopian Arab city in Israel? Turn left at Route 65