This is at least a reasonable reply. But, I would respond that the only thing that enables Israel to strike the posture that it does with regard to its "Palestinian Question" is unconditional US military and diplomatic support. And, let's be clear, Israel wants A LOT more than simply to retain its status as a Jewish state within the territory of Palestine, and it is only in position to demand it-- and, as it looks today, prepare to take it-- because of this US support.
It is at least conceivable that one day US support for Israel will be severely circumscribed (something which far right Israelis and their US backers are in a full panic over even as we speak). Its only then that we will be begin to see what is actually "realistic" in negotiations between Israel and the Palestinians. A two-state or bi-national state would be a starting point, not an end point, and some allowance for a right of return would be a likely result of negotiations.
Only unqualified US support enables the grotesque absurdity of an apartheid state with officially mandated ethnic domination (Israel mandates that it must remain 92% ethnically "Jewish"--no one is required to actually practice the faith, and non-Jews are second class citizens) to persist in the 21st C. No other country or group of countries besides the US either could or would enable Israel to continue in its present form if it entailed the indefinite colonization of 6.5 million indigenous Palestinians, and there is increasingly less in it for the US to continue to guarantee this support.
