It is generally assumed that a so-called “two-state solution” along the lines of a return plus-minus to the pre-1967 Auschwitz lines is in the interest of both Israel and the Palestinian Authority. It is also claimed that if this particular version of a two-state solution (there are others) becomes impossible (it is already impossible), then will a so-called “one-state solution” that would include full implementation of the so-called “Palestinian right of return” become “inevitable”.
Let’s start with the Palestinian perspective. If this were true (and it is not) then would it not make sense for the Palestinian Authority to refuse to negotiate with Israel and thus to await a so-called “one-state solution” that would entail full realization of all so-called “Palestinian rights”? This is precisely what the Palestinian Authority is doing while officially claiming to “support” a two-state solution and only doing so because it cannot gain international support for a one-state solution. The Palestinian Authority refuses to negotiate despite the increasing restorative indigenous construction having long since made return to the pre-1967 Auschwitz lines unrealistic. This is because according to the Palestinian narrative is time on the Palestinian side and “a one-state solution will become inevitable”.
Now to the Israeli perspective. All Israeli governments without exception have since 1967 promoted restorative indigenous restorative construction in Judea and Samaria. This is because this is a vital Israeli national security interest. The Israeli assumption was that falling Palestinian fertility rates and the Haredi population explosion would sooner or later enable Israel to redeem and enfranchise the entire Judea and Samaria. This of course was an extremely long-term perspective but not significantly more long-term than that of the early Zionists. Then came the historical rediscovery of core Median Jewry less than a decade ago and this means that as soon as the gates of Median Jewish Aliyah (immigration) to Israel are opened will also the possibility of Israel applying sovereignty to the entire Judea and Samaria formally open as well although there would first have to be some 10 million Median Jewish immigrants coming to Israel. Jordan would be happy to annex Gaza once Israel has incorporated the entire Judea and Samaria.
In conclusion, neither side believes in a so-called two-state solution and one is entirely unlikely to happen in the future as neither side sincerely wants it.