There is a justifiable argument for Israel to occupy the west bank and/or the Gaza strip (whether one agrees or not is another matter that I will not get into). Settling it is another matter entirely, and this action is what causes so much grief.
But what Palestinian supporters continuously fail to grasp is that every time Israel has tried to give (and there were many attempts in the 1980s and 1990s), bad actors have caused violence. This violence was a huge cause in support shifting to right-wing parties in Israel.
The tragedy is that a plurality of Palestinians would otherwise love to have a peaceful (two state or otherwise) solution, but the "bad" ones are well funded by outsiders, in particular Iran. If a Gandhi/Martin Luther King/Nelson Mandela figure emerged, they'd almost certainly be killed by Hamas,Hezbollah,etc.
But at the end of the day, there's no way the extreme elements of either side will agree to a permanent and dignified peace, because even if it would work it would mean the end of either of them (and Israeli PM was assassinated by a far-right Jewish nationalist).
I'm sympathetic to both sides myself. I'm sympathetic to Israel's position, need for security, and the fact that hostility against them is a given. I'm also sympathetic to the fact that the Palestinian people were pushed off their land, often with violence to a level that can fit the definition of genocide, during Israel's independence and subsequent annexations.
But there will never be a true peace so long as the extremists on both sides have as much power as they do. I know most Iranians are fed up with their government. My Iranian colleagues all are commenting that even devoutly religious Iranians back home are getting fed up. A lot of this is a house of cards, so I guess we'll see.