I remember reading a biography of Golda Mere once a female prime minister of Israel. It gives an account of how Israel was resettled after world war 2 Hitler persection. It was resolved to repatriate the Israeli to their land which was a British protectorate at the time.
Among the first zionist in the repatriation, was Golda Mere. It gives an account how the desert land was bought from the Arab and Palestine residents with deeds. How the desert land was reclaimed and made arable. We have also in our secondary schools examples of settlements which reclaimed land from desert lands. Kibutz. Or something like that.
When someone is in distress and left without home what's available to him becomes a home. Though useless to those who already have a home it is precious to him without. One takes very good care of what's precious to them even if the same may be useless to others.
The Israeli reclaimed a useless unhabitable land from the Arabs and Palestines who took it to themselves to sell it. They turned what was useless, precious. And Arabs and Palestine cry foul for losing what they considered useless. So the fight an innocent people and an innocent people fights back and claims more in 6 days. The rest of the resolution follows from the history from there which land rightly belongs to the Israeli and which land does not.
Daniel reminds God of the 70 years Jeremiah prophesied that the Israeli will return back to their land. In Jeremiah's account God tells Jeremiah to buy some land and store the deeds in earthen ware for preservation. Those who bought land on repatriation must have followed this and kept safe the deeds. These deeds give the Israeli the rightful and legal claim to the land that was bought. From my trust in God and understanding of his faithfulness and how he makes things easier, I think the land bought with deeds available should be enough for all the surviving (remnant?) Israeli to fit in.
So there is Palestine and Gaza strip. I think these lands are separated with Israel in between. These lands can't make one state and peace remain. Governing these lands would also be a problem. How can one leader run a land another land when shared resources have to go through an unwilling land. That I think is the major problem which should not be adamantly held on to. At very best Gaza strip can operate on its own as full state and Palestine the same. Yes they are of the same tribes but look we the ngoni's in Malawi are in separate regions and separate countries yet we commemorate our culture together. The chewa's the same. Some chewa's are from Zambia and Mozambique. Look at Swaziland an island of a nation yet peacefully coexisting. The Palestinians, Israelis and world have much to learn how we govern ourselves peacefully and respect our ways.
We have less problems than the world has yet the world forces its solutions on us which cause trouble than solve problems.