It really is the only option. I mean, neither side is ever gonna be ok living under the other. Never gonna be a stable part of the world until a true two state solution is put into place.
But, the reason why this is a bigger deal with every passing year is that, this was never a secutiry issue for the US. Israels treatment of Palestinians were and is the number one cause of any radicilization used by Islamist to radicalize the youth.
Before Al Qaeda and 9-11, this was an issue but never a threat to the homeland or Europe. After 9-11, and increasingly so, these radical islamists are becoming a bigger and bigger threat to the US and Europe.
Also, the economic theory in the world has been shifting with globilization. Before, an unstable region of the world would economically cripple that region. Now, the instability of a place like Iraq, Syria, or Israel/Palestian affects the world, icluding the US. Economic theory of 50 years ago for example was he who controls the resources has the power. With that in mind, the US would support brutal regimes in the mid-east, latin america, and africa because they would mean they would control the resources, chose how its exported and who its exported too.
Now though, its much easier to trade between countries. Any country could essentially trade with the other. So, today economic theory is shifting to the idea if a place is stable, they can produce more resources amd maxamize output which will benefit all.
With that idea in mind, the first real step to stabilizing the middle east is to fix the Israeli-Palestinian issue.
Ofcourse, as with any revolution in thought, there will be groups who are against the change and try to hold onto outdated principles. The Trump administation is going to be that.