.... Once the deal was done, both sides had the 'shared' interest in rejecting the two state model, both mistakenly believing that they could 'eliminate' the hated 2nd state to their own advantage....
Again....
huh??

If you'd care to check your history,
Israel has won it's wars, and VOLUNTARILY pulled back from the vast majority of the land it captured during those wars... Furthermore, there has never been a "Palestinian State" to attempt to eliminate... and Israel has never attempted to claim Palestine west of the Jordan river as "Israel" since agreeing to the original partition...So again...

Since '48, Israel has had a state. It was the Arab side (long before the concept of a unique "Palestinian People" existed) which refused to accept Israel on
any borders and waged war. If you recall, the Arabs
had '67 borders (under Jordanian and Egyptian "occupation"), but those borders were again not enough (as '48 borders weren't enough in '48)..
They (the Arab/Muslims) waged more war, losing again. ... And how many times did Arafat walk from the peace table with NOTHING only to wage more violence?? Again...If Israel wanted all of historic Palestine west of the Jordan river to be "Israel" (as you implied), it would have formally made such a declaration long ago... AGAIN,
Israel won it's wars and voluntarily pulled back to borders it deemed defensible from those who obviously (by their actions) sought and seek to do it and it's citizens harm. Having to police a violent neighbor who refused to police themselves and who's elected government openly seeks Israel's destruction (ever read the Covenant of Hamas??
http://www.yale.edu/lawweb/avalon/mideast/hamas.htm ) is in no one's best interest... But until the Palestinians have
demonstrated through their actions an ability and willingness to live in peace, others (namely Israel) have to police them.
...It seems that the 'two-states' solution is only now coming to be widely accepted by both sides on the basis that they both have utterly failed in their attempts to eliminate the other...
Again...the
attempted balancing act??.... "Widely accepted by
both sides"... "
only now"??..... As indicated above... it's
some (and only "some") of the Arab side who've only recently come to embrace this idea... AS THEY'VE LOST ALL THEIR NUMEROUS ATTEMPTS TO DESTROY ISRAEL... Israel has made numerous offers to the Arab/Palestinian side over the years and has long ago agreed to and made offers based on the idea of a second Arab state in Palestine (second to Jordan which makes up 77% of what was the Palestine Mandate)...The first Arab state to recognize Israel's right to exist... didn't recognize such until 1978... some 30 years after it's formation... hmmm

With all due respect... you seem anxious to try to
"balance the scales" (or show some "shared interest"?),... to equate one side to the other, you're ignoring or clearly haven't researched basic historical facts on this subject. Is this a subject you're familiar with or are you just trying to show both sides being equally bad/good??