Like crescentmoon, said above, I'd like a one state solution. A state that is neither Jewish or Muslim. But demographics mean that it would not be Israeli dominated and I think that wouldn't do for some, as they don't want peace, they just want power.
As for a two state solution.
I think:
Israel to return to 1967 borders.
Demolish the illegal settlements. Give the Golan back to Syria (when Syria get a new govt).
If they are not willing to accept Palestinian right of return, they must pay reparations.
Equal access to water.
Demilitarisation of checkpoints. No more blockades. Ever.
As part of the reparations, new connections between West Bank and Gaza to be built.
Palestinian state to have an offical army. All other militias to be disarmed. No more rocket attacks.