It would be nice if Arabs would consider a state in which Jews have full rights of citizenship. However, look at Saudi Arabia as a prime example of Islamic tolerance for Jews. No synagogues, no yeshivas, not allowed to travel to certain cities. I don't think, with the Arab view of Jews which is being taught in PA schools, your idea of a single state would work.
U.S. defense chief tells Congress: Military options remain against Iran (DPA)
from the article: Netanyahu declares 10-month settlement freeze 'to restart peace talks'