Real Solutions between Israel and Palestine

I had a fascinating conversation about the politics of Israel, and developed upon a theory regarding why present peace proposals continue to get rejected, and a potential solution that speaks to the real issues that maintain the level of hostility between these two people.
Needs of the Palestinian People
During my years in Israel, I interacted with many Palestinian people, nearly on a daily basis. The vast majority were willing to make sacrifices to have a homeland again. Most renounced the violence, though many said that it was the only way they could further their cause. And they all spoke on a national pride, of a return to a time when they controlled Jerusalem.
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