Nice to say I agree with most of what your say and propose although of course see the reality differently in terms of specifics, not least your assumptions regarding the Palestinian Arabs’ attitudes. We do need more polling, as you say, following the war. But most polling over the past 20 years indicates real hatred and animosity towards Israel and Jews, and this last two years won’t have lessened that. So your assumption that in a time of war attitudes harden, though true, doesn’t help in the long term.
And your suggestion that a statement regarding the Jewish communites in Judea & Samaria (“settlements”) or the dismantling of small Jewish farms (“outposts”) would move Palestinian Arab public opinion is rather naive and unhelpful, I think. Palestinian Arabs (and their leaders) care most about independence, ie. ending what you call the “occupation” in some areas and mostly expressing their national identity in the form of a state (or about destroying Israel - one or the other, or both). “Settlements” are not their key issue, according to all polls I’ve seen. And Israelis, as you correctly note, have consistently agreed to the concept of another Arab state being established as their neighbor - as long as it truly (verifiably) will live in peace and harmony with Israel. So yes, more pronouncements reinforcing that acceptance of a new “Palestine” alongside Israel is an important element.
(I do understand your point in suggesting that Israeli leaders express their intentions to not add new Jewish communities, or to disband existing unauthorized “outposts”, as confidence-building measures; similarly, pronouncements by Arab Imams and political/cultural leaders accepting Israel’s legitimacy and expressing a desire to live in peace as neighbors, let alone changes to their educational curriculum and media along these lines, would be helpful. But few will be mollified by statements. Both peoples need to see action on the ground, not speechifying.)
I agree that a ‘two-state’ solution may still be on the cards - but the Arab Palestine to be created may have to start across the river, in what was “Trans Jordan” or “eastern Palestine”, and with some arrangements when peace comes regarding the ‘disputed territories’ on the west bank of the river, ie. historical Judea & Samaria.