The problem with both the Israeli people and the Palestinian people right now is that they don't trust each other. The Israelis fear that a Palestinian state will be yet another state on its border that is going to send rockets towards it, as Hamas has done, and the Palestinians clearly don't trust a government that is building settlements and attempting to annex the West Bank.
First of all, we need to build trust. With trust and with incentives, I do believe that both sides would begin stronger support for a two-state solution. Right now, it's quite low, less low in Palestine than in Israel, but with leaders who support two states, who are prepared to compromise and who lead their people in that direction, I think the region can get there.