A solution that pisses off the most people is likely the best one. Israel complicates the move to negotitations because Israel knows the solution will boil down to this: 1967 borders with only small modifications (not Israel takes what it needs for settlements, resulting in a border 20x longer than it need be). A sharing of Jerusalem. A safe passage between Gaza and the West Bank. A solution to the refugee issue that does not disturb Israel's demographic desires. Appropriate security arrangements that do not infringe on either side's independence. Pretty much noone will be completely happy with this. The PA is on board. Israel is not. Hamas' political position is too incoherent to even judge.
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Details of secret talks for Israeli unity government revealed (Haaretz)
from the article: Pro-Mideast in America: Getting past 'Pro-Israel' and 'Pro-Palestine'