The relationship between Israel and Palestine is truly a tale of two realities where, over the decades, people on both sides had their lives prematurely taken from their loved ones. Strong leadership committed to peace and prosperity on both sides for both sides is needed to resolve this dispute as well as the United States leadership returning to the role of Honest Broker instead of its recent overt pro-Israel posture.
On one side you have the Israelis who represent the only vibrant democracy in the region. In this country, everyone, including the Arabs, has equal rights and representation in the Israelis Parliament, the Knesset.
However, the Israelis have a problem trusting their neighbors for good reason. Before it achieved nationhood, its mandate to establish a homeland in Palestine was reduced by roughly two thirds when the British, in the first land for peace deal, called the Palestinian Territories east of the Jordan River Trans Jordan (later just Jordan) and gave it to the Arabs. Not satisfied with two-thirds of the land, the Arabs in the Jewish third of Palestine wanted that too. Giving into Arab protests, the British decided to divide that parcel up in a similar way that they haphazardly partitioned India and Pakistan (whose eastern boundaries would become Bangladesh). This arrangement was doomed to cause future conflict as the future states of Israel and Palestine were born. In the war for independence, Israel, despite the odds, survived increasing its territorial holdings on lands Palestinians abandoned at the leading Arab elites request (thinking they would return after Israel was defeated) or when the Israelis ejected them. Whatever was left was scooped up by Jordan and Egypt in the occupation nobody seems to remember in the history books. In the later Six Day War in 1967, Israel acquired the remainder of Jerusalem, the West Bank, the Golan Heights, Gaza, and the Sinai Peninsula. Israel offered to return all the captured lands in exchange for peace and the Arab countries rejected the overture. Only later when Egypt made peace with Israel in 1979 was the Sinai returned. Gaza was also offered back to Egypt but the Egyptians did not want the headache. Jordan probably felt the same way when it did not insist on the return of the West Bank when it made its peace treaty with Israel in 1994.