Not a long while ago, my school held a 24-hour peace simulation for the Israeli-Palestinian conflict. The interesting point of it was that my Israeli friends were assigned to the Palestinian delegation and vice versa, so that they could put themselves in each other's shoes. I myself was part of the Israeli delegation and therefore, experienced one of the most intense debates ever. We were determined that the two-state solution was the most ideal right from the start, but as we proceeded the discussion, we encountered plenty of unexpected difficulties regarding the existence of checkpoints, division of Jerusalem, settlements and the question of a unified Palestinian authority. Despite all the aggressive shoutings (a Middle Eastern characteristic I believe...), in the end, we came up with a decent agreement, which you can take a look at here: https://docs.google.com/document/d/169Y4IHkAiKpIpTI2R5AgyLI5FOtJ7kGq6fPFaeNWMh4/edit?usp=sharing
Nevertheless, I have doubts about the two-state solution now and then. Most of the Israelis in my school consider themselves to be liberal, but truth is, the overall society is right-winged. Most of the locals I have met do not recognize Palestine as a state, or Palestinian as a nationality. My Arab friends are more oftenly checked at public places (train stations...) for "security" reasons. I personally believe it is a nice idea, but its feasibility is debatable: the Israeli government is still providing Palestinians with basic needs, especially water supply; and its army is so advanced that unless Palestine was backed up by powerful allies, there would be no way that it could catch up in a short period of time, or even feel secure in its process of building the country. Plus, there has been no solid solution to the question of bridging Gaza and West Bank.
These are my thoughts in a nutshell. Any comment are welcomed and will be replied!