As you mentioned solutions must be found to all of the issues that you have listed. Both sides should understand that there is no 100% satisfaction. Both sides will get less than what they expected. Some of the settlements will stay and some Israeli land will be swapped for it. In order to achieve a lasting real peace the most important thing is for the two people to start loving each other. While this will take a long time at least they should start to hate each other. For Arabs peace means land but for Israel it means normalization of relations, trading, cooperating with one another and cultural exchanges which mean trust.
Israeli ambassador to U.K.: Elements of left 'in denial' about 'disease' of anti-Semitism (Haaretz)
from the article: Associates of PM Fayad planning alternative to Fatah and Hamas