Sorry for mentioning 1948, ketchup07070. You're right that a lot has happened and changed since then.
I'm trying to stick to what the situation is now, and understand whether there is a realistic way to create a 2 state solution, which satisfies the many legitimate concerns on both sides. I was just feeling a bit hopeless about it, and hoped someone might have some insight!
The one I can't see a way past is the one Bells metions: what guarantees do they have that the PLO or Hamas won't continue to launch rockets for those new locations which could easily reach pretty much all of Israel
I don't see how this can practically be solved.
I simply don't think it's reasonable to expect Israelis to just hope for the best: open themselves to attack and just trust that nobody will take advantage. Would you, if it was your family, your country, that risked annihilation? Maybe in a generation, if they achieve many small steps of trust along the way and ongoing peace over many years. But not today.
So what happens today?
Toothyfruity suggests steps at the individual level. Shutting down settlements in the West Bank, and giving houses to Gazans. I know that property ownership is a huge point of contention - often with several people feeling they have genuine claims for ownership due to property sales and long use. But this does seem like it's something that could be in the gift of the Israeli government. (perhaps with a contribution from surrounding countries where Jewish people lost property after 1948 - or perhaps a cost Israel would just be willing to pay for peace)
Would it be sufficient for Palestiniams though? If the West Bank was still controlled by Israel as a demilitarized zone?
And are there any constraints from Israel? Are they worried that they would lose control of the territory if it was entirely filled with Palestinians but with security controlled by Israel?
What does it actually look like for Israel to control the security? Checkpoints and import control, certainly - to keep it demilitarized. Pretty much what the situation was in Gaza I suppose, but actually even more controlled by Israel, since that didn't work.
Is that sufficiently different from the current situation to satisfy the Palestinian people so that those small steps towards trust and peace could actually be achieved?