You have a house and someone takes over it, and locks you and your family in the basement for years. They then offer you a deal of also having the box room (but no way to get between the two). Is it a good deal or would you just want your house back?
Its an oversimplification, but fundamentally aaccepting a 2 state solution means the Palestinians get less than they originally had still. The thing is, time has moved on, and the 'new' people in the house aren't really new any more, have settled down, had families etc, and making them homeless isn't really any better. Coupled with that, they are backed up by powerful friends.
So the pragmatic solution is a 2 state solution, but it needs to be a viable and independent state. Israel supporting settlers in the west bank undermines their commitment, and Israel blowing up gazas airport and seaport further adds doubts that any state would be actually independent.
There'd need to be faith in both sides. Setting aside this current conflict, there can be no trust until Hamas (or other group) stop firing rockets, until the IDF stop bombing/detaining prisoners without charge/shooting people. Israel needs to not try to control everything going in/out. Both sides need to dial down the genocidal talk.