The winning powers of the world war 2 wanted to keep the West Asia under their control perpetual control. The defeated and divided the Ottoman empire in the first world war. Most of the countries of this region are an artificial creation of the Allies. The Holy Land, Petroleum, Suez Canal, Strategic location of these countries at the centre of the world, desire to control the Muslim world, etc are the main reasons for their interest in this region. Israel is their key to this region, a foothold from where they can keep whole of of West Asia under their dominance. And Palestine is the symbolic protest of the Arab countries against the continued hold of the western powers. Some may call it the clash of the civilizations, some may call it petro-politics, same may call it geo-politics, but it is only a mindless stubbornness in which innocent including children, hapless women, old and destitute are being killed. People on both the sides want to live in peace but due to the politicians and foreign powers they are living a life of fear. Rockets and bombs are destroying schools, hospitals, homes on both the sides. There is a continuous cycle of attack and counter attack, allegations and counter-allegations.
The innocent people are paying the price for the stubbornness of their political masters. Both the countries have a right to exist. The Zionist state could have been set up in the empty land of Canada, Falklands, Australia, Siberia etc. But since majority of the Zionist people wanted to settle in their Holy Land and most of them had already arrived there, the state of Israel was created here only. But the total size of the land is very small, making it very difficult to defend. Israel is surrounded by hostile Arab countries. Between 1945-1995 about 74000 military personnel and 18000 civilians have lost their life in Arab-Israel conflict. Their is complete deadlock. Occasionally their are talks of resolving the issue through peaceful means but due to deep rooted mistrusted such talks soon break down.
It is in the interest of both the nations to accept each other's right to exist. What has already happened cannot be undo. Neither Britain and America [or any other western power] is a well-wisher of the Israeli people nor the fellow Arab countries are genuinely interested in the welfare of the Palestinian people. If it would have not been so then the western powers would have had granted land for the Zionist people in a conflict free area as mentioned above. It is true that the Arab countries have supported the Palestinian resistance movement but they had their own national interest behind such actions [read war]. The USA has given continued support to the Zionist state but not because it wants so but because of the powerful Zionist lobby.
There are two possible solutions. Two state or a secular federal state. The Zionist state and the Palestinian state can co-exist. There should be two separate states, each honoring other's right to exist. However at present the Palestinian state is divided in enclaves. Israel has very little land. Creating two states in such a tiny piece of land is nonviable. So their is an option of a secular federal democratic republic where both the communities will have equal share of power. However this one is quite difficult to achieve as both of them have different socio-religious beliefs and differing opinions on many matters. It will be very difficult to run such a country. There will be continuous mistrust on both the sides.
If the two state solution is implemented then it has to be guaranteed by both the states they will honor each other's sovereignty and will not let their respective land to be used against the other. Major regional powers like Iran, Turkey, Egypt, Saudi Arabia and the USA, the UK,the EU,Russia, China,India, etc should also be involved in this process. Israel-Palestine peace is important for peace in the West Asia. It is necessary for upholding human rights of innocent people. It is important for world peace. Two state solution for the Israel-Palestine conflict seems to be the best possible solution. But it requires genuine interest and will power of the both sides to make it a possible and a success.