Jay Michaelson makes some good points in his article If Israel’s Occupation Is Permanent, Why Isn’t It the Same as Apartheid?
The time to separate into 2 states would have been 20 years ago, when support was still high. Now it's hard to imagine how it'll happen. The Palestinians missed chances and then their violent responses hardened Israeli public position.
I don't know what the answer is. I agree with the article, but I don't see a two-state solution happening anytime soon. Israel is stuck in a morass of it's own making and the making of the Palestinians.
One other point - many on the right will take exception to Michelson's 2nd to last paragraph, that the long-term demographics aren't on Israel's side. Caroline Glick, for instance, asserts that the Jewish birthrate is rising and the Palestinian birthrate is dropping. Is that true? It's hard to know. It may just be selective reading of the data by a right wanting to believe that there will always be a Jewish majority.