The Middle East historian and war journalist David Hirst says this about the Israeli/Palestinian conflict:

"...there has long been a broad international consensus about what a 'just, lasting and comprehensive' settlement in the Middle East should entail: namely, the 'two-state solution' under which, side by side with Israel, the Palestinians would establish a state of their own in the occupied territories, with East Jerusalem as its capital...(but) this has begun to look more and more improbable, rendered increasingly unviable as it has been by the vast expansion of Jewish settlements in East Jerusalem and the West Bank...".      David Hirst in 'Beware of Small States'   (p.419)

Rational people will agree that you cannot genuinely solve a problem by constantly placing obstacles in the way of a viable solution. So if the solution in question is one involving two states, Israel and Palestine, then serious considerations of statehood and borders must apply to both sides and not blatantly favour just one. Secondly, if the solution is that of only one combined state, say a bi-national land in which Palestinians and Jews co-exist on an equal footing, then obviously considerations of fairness must apply for the state to gain widespread acceptance.
However, a former Israeli prime minister, Ehud Olmert, has openly said that the day a plan for a South African-style, mixed race single state gets going the 'state of Israel is finished'. Make of that what you will. But it can be expected that Olmert's dismissive view is shared by Israeli regimes in general, both past and present, because Olmert is considered more 'doveish' than premiers such as Sharon and Netanyahu. Thus the only democratic option seemingly available must be the two-state one, though Israel continues to do its very best to prevent such a situation coming about.
So where exactly does this leave the Palestinians? At present they are still living under occupation, controlled by an oppressive, repressive and highly intransigent Israeli regime which is determined to give them no serious consideration whatsoever.
What are they meant to do, just accept this?