It really is the only solution possible for peace in the region but Israel will not even consider it.
Hamas is a result of the oppression. A consequence of being confined in a 140 sq mile area.
I disagree on that at least in the short term. Why is it West Bank has been relatively peaceful and quiet for the last decade yet Gaza is always a snake pit? Even while the IDF is only in the west bank and there are no settlers in Gaza?
It's all about who is in charge. Hamas's only goal is to dig tunnels, stock more rockets, and keep pumping out jihad cartoon shows to brainwash a new generation of hate-filled youths. The PLO in the West Bank however have concentrated their energy on economic investment and creating jobs and because of it there is no militants marching in the streets on a daily basis anymore or firing of rockets.
A recent poll showed that while Palestinians are divided roughly 50/50 on supporting either a two-state solution or recovering ALL of Israel, at the same time 80% said they want Israel to let in more Palestinians to work and most reject violence which is almost contradictory in nature.
I think at the end of the day what most people want is jobs and security, and considering the deteriorating situation in Syria, Iraq and all across the mideast, I'm not sure if deep down Palestinians are ready to see the IDF gone completely from their backyard even if they publicly say so. What good is a national state on paper if it becomes an anarchy war zone? Look how fast Gaza fell apart and spiraled into a Fatah/Hamas civil war when the IDF left and pulled down all the settlements.