Having lived as a student in Israel for two years, I think this is unrealistic. Israelis, with good reason, view Palestinians as people who wish to do them harm. Any resolution to the conflict needs to have as little interaction between these two people as possible. Israelis are never going to trust the Palestinians to protect them as Israelis. Remember that Jews were being attacked long before there was an Israel, when they were Palestinian Jews. Becoming Israeli Jews was a solution to that problem, and Jews are much better off than when there was no Israel. The conflict is in many ways a religious conflict. Like most religious conflicts, it will be solved with more separation, not less.
Erdan meets senior IDF officers (res.) to discuss candidacy of Gal Hirsch for police chief (Haaretz)
from the article: A Palestinian peace plan Israelis can live with