Slavoj Žižek argues in the New Statesman for a binational state in Israel & Palestine - the "simplest and most obvious solution" to the conflict.
Highlighting some disturbing instances of racism (and sexism) in Israeli society (such as the 2007 poll that showed that over half of Israeli Jews believe intermarriage is akin to "national treason"), Žižek makes the key point that:
What makes these campaigns so depressing is that they are flourishing at a time of relative calm, at least in the West Bank. Any party interested in peace should welcome the socialising of Palestinian and Jewish youth.
He goes on to say:
Until recently, Israel was often hit by terror attacks and liberal, peace-loving Jews repeated the mantra that, while they recognised the injustice of the occupation of the West Bank, the other side had to stop the bombings before proper negotiations could begin. Now that the attacks have fallen greatly in number, the main form that terror takes is continuous, low-level pressure on the West Bank (water poisonings, crop burnings and arson attacks on mosques). Shall we conclude that, though violence doesn't work, renouncing it works even less well?...
None of this implies sympathy for terrorist acts. Rather it provides the only ground from which one can com.
Visit the New Statesman to read the full article.
For a critical overview of the Israeli 'peace camp' liberals and their European supporters, see Yitzhak Laor's The Myths of Liberal Zionism.