Yes and they were offered such in 1937, 1947, 2000, 2006 and so on. Olmert's offer in 2006 would have east Jerusalem as a capital of the Palestinian state, 98% of the land Palestinians wanted, and the Holy sites owned by no one. Arafat refused to even consider it or counted-offer. The previous peace offer he walked away from to launch the 2nd infitada killing thousands of Israelis. Before then there were no checkpoints or separation barrier. Now with HAMAS controlling Gaza, 2 states is impossible until that is resolved. Even then there is no guarantee the rich elites of the Palestinian leadership would accept it, they make too much money keeping things as they are. When it comes to HAMAS, the PA or Netanyahu's government- what is good for them is not good for ordinary Palestinians or Israelis. And for the last couple of years the Israelis have given up even pretending to try and do a 2 state solution.