It's About the Settlements, Stupid
Jewish settlements in Judea and Samaria, the misnamed occupied territories, are not the obstacle to peace between Israelis and Palestinians. They are the acid test of peace. To argue that peace is conceivable unless the bulk of the settlements remain in place constitutes stupidity or hypocrisy. Leave aside the issue of whether Jews have the right to live in the historic homeland of the Jewish people. Ignore the fact that the settlers live overwhelmingly on what was waste land and turned into gardens, vineyards, and industries which have uplifted the lives of Palestinian Arabs more than all the aid that has passed through (or rather stuck to) the fingers of the kleptocrats of the PA. Leave aside also Israel's requirement for defensible borders: that is a critical issue but not identical to the continued presence of settlements.
Accepting the settlements is the sine qua non of any viable peace agreement. It does Israel no good to defend Israel's right to exist but to condemn the settlers, as does Alan Dershowitz, not to mention the leaders of liberal Jewish denominations.
I believe in land for peace. That is a tautology: In territorial disputes the two main variables always are land and peace. But that implies more land for more peace and less land for less peace. The Palestinian Arabs had an opportunity to accept an Israeli state on just 5,500 square miles of land in 1947, and refused to do so. The armistice lines of 1948 left Israel with 8,550 square miles, and the Arab side refused to accept that. In 1967 Israel took an additional 5,628 square miles of land in dispute under international law; Jordan does not claim it, and no legal Arab authority exists to claim it. It is not "illegally occupied." It has never been adjudicated by a competent authority.
To demand the 1948 armistice lines (the so-called 1967 borders) is to refuse any penalty for refusing to make peace in the past. That is the same as refusing any peace at all. Wars end when one side accepts defeat, and abandons the hope of restoring the status quo ante by force of arms. 1947 was a catastrophe ("Nakba") for the Palestinian Arabs, to be sure, but it was a catastrophe of their own making; until they accept at least some degree of responsibility for the catastrophe, they will not be reconciled to any peace agreement. That is precisely what Palestine's negotiator Saeb Erekat meant when he eschewed any recognition of Israel as a Jewish nation-state because "I cannot change my narrative." The "narrative" is that the Jews are an alien intrusion into the Muslim Middle East and eventually must be eliminated by one means or another.