Last time there were serious negotiations about peace between Israel and the Arabs everything seemed to go well - until the issue of the return of the Palestinian refugees came up. Israel refused the return of all refugees and the negotiations were over.
So Israel is the bad guy? They cleansed some 800,000 Palestinians from their homes and now they don't want to give them their home back? Not so from the point of view of many Israeli Jews. They will point out that 40% of Israel's population are Jews who come from Arab countries. Some deliberately emigrated, but many were simply thrown out of their countries after the foundation of Israel - while all their properties were confiscated.
The number of Jews sho left the Arab countries is at least as large as that of the number of Palestinians. Yet no UN resolution has been dedicated to their right of return and their right of restitution of properties. Of course very few of those Jews want to go back: they live no in a much richer country and are no loger discriminated. But that doesn't take the responsibility of the Arab countries for what they have done away. While Israel provided a home for the Jews that they threw out they consistently refused to provide a home for the Palestinians that Israel threw out.
Yet even Israel-friendly America hasn't found the words to advocate such a point of view. But I don't think that the Israel-Arab conflict is solvable unless the Arabs take their responsibility.
All Palestinian refugee camps should be turned into towns with full rights. And Palestinians should get the right to become citizens of the Arab countries if they want. In my opinion that is the only road towards a solution.