OK, lets talk peace from my objective point of view. Alright, as objective as I can be, since I'm an ethnic Jew, and I realize that Israel does serve a purpose right now, and probably the next 100 years at least, as a place of last refuge for any Jew to go to if anti-semitism gets ugly anywhere in the world. Right now, Israel needs to have a Jewish majority, but inevitably us Jews only need to be around 1.8% of any population in order to control just about everything:)
My viewpoint is also tainted by my militant atheism too. There is no evidence for any God, and the idea that Noah's Flood or the Exodus happening is zero in my books. But I do understand that humans have evolved the susceptibility to believe in God, and that is a fact that isn't about to be changed in the next little while. It isn't like God is going to show up and tell everyone he doesn't exist.
I have a few assumptions based on reality.
1. If the Arabs dropped their arms there would be peace. And Israel inevitably wants peace. Proof: We now see peace between Israel and Egypt for example, since they signed a land for peace deal. Another example is the exodus of Jews from Gaza.
2. The Palestinian Arabs collectively have never shown an inclination to want a state peacefully laying next to Israel. Proof: 1948 and the rejection of the Partition, and from 1948-1967 when there was no talk about turning the West Bank and Gaza into a state prior to the Israeli "occupation." Present, Hamas' complete rejection of the Annapolis Summit. Hamas was elected by the majority of the Palestinians.
3. Sovereign Israel is behind the Green Line. However, the West Bank and Gaza are up for negotiations, much like the entire Palestine region was up for negotiations prior to 1948. Jews in the West Bank are settlers, but so are the Arabs. If the land belongs to any government right now, it is Israel (since Jordan gave up rights in 1988). But Israel has not made sovereign borders to include the West Bank because they don't want the West Bank Arabs to be citizens of Israel, because demographically it would be a nightmare very shortly, and suicide for the Jewish majority state (The Jewish state is needed as I pointed out before)
4. The governments that decided to put Jewish settlements and increase Jewish settlements in the West Bank were not thinking straight. It was an emotional decision with absolutely no foresight. You can't have settlements that are not continuous and expect to be surrounded by Arab villages along the way, at least not in a sovereign nation where you can't give the Arabs in the West Bank equal rights....if Israel were to make final borders that included Arabs who were not citizens, that would be Apartheid. It isn't right now, but this situation cannot go on any longer. It is like a perpetual game, and it is starting to get old.
5. Even full withdrawal behind the Green Line will most likely not stop the violence, but some sort of final borders must be made. Even though Israel was condemned by many Moonbats last year for the war with Lebanon, at least it was a war between two sovereign nations. Israel needs to just give the Palestinians a state they most likely don't want in order to give a Israel legitimate military target, if Israel gets attacked (which most likely will happen). Until Israel makes sovereign borders, technically non sovereign portions are in fact up for grabs, and violence, though detestable, is not completely off base. But it works both ways. And since Israel has the power to wipe out the Palestinians if they wanted to, it really is foolish on the Palestinian's part to engage in Israel in this way. But nobody has ever accused the Palestinians of doing the right thing.
The biggest problem is the solution for final borders.
Including the West Bank and Gaza would be suicide for the Jews of Israel. Not gonna happen, not even on the table.
Going back to the Green Line or close to it is probably the best bet. Compensate the Palestinians with a little land to draw the West Bank closer to Gaza so the Palestinians could possibly have a tunnel to connect the two areas (which of course will be used to ship arms back and forth). I would also compensate the Palestinians with a few billion dollars, just to show some Goodwill (so they have some money to buy more arms, most probably).
Sign an agreement that allows Jews and settlements to remain on their perceived holy lands in the West Bank, but they must live under the new Arab majority government. It really is only fair, since many Arabs live in sovereign Israel. But would it be safe for the Jews to live in a most probably hostile new Islamic nation? Absolutely not, but they should have the option.
Jerusalem has to be divided, but I do like the idea I just read in this article: Western nations should put their embassies in Jerusalem. Islam lacks humility. The West needs to bring humility to them in order to foster in the best of the West which is "the social contract" (confused in the article as being Judeo-Christian values).
The former governments of Israel set up this mess in the West Bank, and it is something that just cannot morally or ethically or logically perpetuate. And it is going to be very expensive to unwind, but I think it is the only way to possible peace (a peace, which again isn't very likely currently):