There is absolutely no peaceful alternative to end the Israel-Palestine conflict other than a two-state solution. Having said that, there's the harder part to figure out: exactly how these two states will cohexist? Firstly, there needs to be a mutual recognition of statehood by both sides, so that the Palestinian people can have a representative with a mandate to represent them in negotiations. The only way that I see these negotiations going somewhere, though, is if both sides compromise in order to reach a final settlement of land disputes. It will probably be impossible to go back to the 1945 division created by the UN, given how much Palestinian territory Israel has taken since then, but an agreement that respects Palestinian's rights can be reached, if the Israeli settlements and other matters are also resolved.