Agree on all counts. I don't blame the Palestinians for rejecting partition--either the Peel Plan or the UN. Why, after all, should they agree to giving away any part of their country at all?
But it happened.
A two-state resolution is absolutely the best course. Is it still possible somehow? I dunno. If the proliferation & geography of the settlements have made it unduly difficult perhaps the Israeli government should announce the creation of a true, autonomous Palestinian state from the river to the green line. Give Jewish settlers one year's notice to either relocate to Israel or live under Palestinian rule. Could it happen?