Peace will come when the Palestinians feel that they have received justice, and that means that the refugee problem must be dealt with fairly and in keeping with international law. This means allowing the refugees the freedom to reclaim their homes and re-establish their villages in Israel if they want to--the decision should be theirs. Two states on the same land--a condominium--would allow refugees to return AND Israel to remain a Jewish state (and Palestine also to be a state, with membership in the United Nations). Each state would take care of its own population. The two states would coordinate on everything else. See parityforpeace.org. P.S. The West Bank is not disputed land. It is occupied land, subject the the Fourth Geneva Convention, which says that an occupying force may not move settlers into the territory it occupies.
Firebomb thrown during demonstration in northern Israeli town of Umm al Fahm (Haaretz)
from the article: A pragmatic vision for Israel's Left: A reply to Benny Morris