Not that it's a solution to this debate, but does anyone really believe any two-state solution would stop any of this?
The fringes of both sides are hell-bent on the destruction of the other. The leadership there needs to change.
The only solution at this stage is the one-state solution, for Israel to become a multi-ethnic, democratic nation with equal rights for all.
One other note: I don't think it's fair to characterize the Israeli belief in their supremacy over the Palestinian people as a fringe one, but one that is baked in.