The Israel/Palestine problem is not complicated: we have an occupying power (Israel) and an occupied people (Palestinians), and a huge disparity of power and control between the two, all within the context of International Law, and the UN which has already decided upon the solution (see http://israel.rationalreality.com). If the occupying power desires peace, it can be readily achieved, given its dominant position. So why has peace not become a reality in almost half a century?
In the 1950s C. Wright Mills wrote about the Military Metaphysic- the military definition of reality deeply espoused by the US elite. Why the Israel/Palestine problem will not get resolved and has not been solved so far can be understood, in my opinion, in light of what Mills wrote:
"The expectation of war solves many problems of the ’crackpot realists’; it also confronts them with many new problems. Yet these, the problems of war, often seem easier (for them) to handle, (compared) to political policies that are distasteful to many politicians...The terms of their long term solutions, under conditions of peace, are hard for the capitalist elite to face." (Page, 87, Causes of World War III)
What is distasteful to the US and Israeli elite, is peace in the Middle East, and the resulting effect that might have on regional development in the Arab world and US hegemony in a resource rich region. In their uneasy alliance with corporations, whose leadership positions they normally hold when they are not posing as politicians, the Neo-Cons in the US (Israel’s strong supporters) have found dual fulfillment of purpose. The terms of the "long term solution" to the "Palestinian problem" are what they do not want to face. If that can be avoided, any "practical problems" that a new war or a new Intifadah might bring are easier for them to handle. In all such alliances to further power and wealth, human suffering and misery become at best, background noise justified by moral symbols, unconnected events (like the holocaust), media distractions, and stage management. The US and Israel together (and not only Israel), are to blame for the lack of peace and development in the Arab world.
I do not think that peace in the Middle East will ever become a reality as long as US hegemony in the current world system continues to exist. Even if (in an imaginary scenario) the Palestinians voluntarily leave the West Bank and Gaza and hand it over to Israel on a silver platter, Israel will invent a new war in that region, in tune with the desires of the US elite. There will still be no peace.
Peace is possible only if the current world system with its structure of power and manipulation is altered to one that places humanity and its well being before wealth, resources and profits. Peace, working within the current system, dominated by the US power elite, is impossible to achieve. History bears witness to the fact that regardless of the face or political label of the person in power, or the terminology used for the various "peace plans", there has been no peace in Palestine and no end to the Israeli occupation.