Hypothetically, is it even possible for the area of Israel/Palestine to support two states? I mean, it may be that is is only possible to support one real state and one "Bantustan" and there is no room for compromise.
This is certainly a tough situation; I'm glad I'm not the one who has to make these decisions.
If there ever were a real peace, then certainly there could be two states. But I don't really see how it could be possible right now. The current situation is far from ideal, but how to get to a peaceful two-state solution is something I just don't see. The only thing I see is that building more settlements is certainly not the way there. I think even the Zionists realize that, but like the Palestinians, they too have essentially given up on the idea that a stable two-state solution is possible. Peace is something both sides pay lip service to these days without any expectation it is really possible.