I simply don't believe they are entitled to 100% of the territories. Additionally, Israel has the right to safe and secure borders. Negotiations over borders, security concerns, and a few other items have been sticking points all the way along. Even when the Palestinians WERE offered a state on any number of occasions, they have declined the offers because they weren't good enough. Sadly for them, every time they receive an offer, it's for less... Natural consequence of time moving on. Ooops.
Jerusalem suburb of Even Sapir evacuated as wildfire spreads (Haaretz)
from the article: It's time for Netanyahu to say yes to Obama