Oslo was not the last offer on the table for the palestinians. Arafat was offered a palestinian state with Jerusalem as its capitol. Israel would keep some settlements which were essentially suburbs of Tel Aviv and Jerusalem, and palestine would be compensated by other land now part of Israel proper. The hang up was right of return.

Now realistically, asking Israel to absorb 2 million palestinian arabs would be asking it to commit national suicide. Comparable to America suddenly absorbing the entire population of Mexico. It is simply too much to ask of Israel.

The solution now as then can only be monetary compensation. How much money per refugee to give up any land claim to Israel proper, and take the money and move to the west bank, or where ever?