Anyone who thinks Palastinains will settle for pre-'67 Israel as being the nation state of the Jewish people is deluding themselves. If there was going to be a peace like that based on a two state solution, Arafat would not have walked away from Camp David and the Geneva Accords would be in place today. So long as the main complaint of Palastinians is not against oppression, but rather that they are not the oppressers, there will not be peace.
Police arrest 18-year-old Palestinian suspected in Old City stabbing (Haaretz)
from the article: WATCH: Haaretz interactive map of West Bank outposts