I think it's impossible for there to be peace. Both sides claim the land, both sides are willing to kill to have it, and both sides claim their right to the land is from their god. The problem is, there were people living there before Judaism and Islam became prominent, so I don't recognize either of them as having a more legitimate claim to the land over the other, and even less so when their justification is "because my god said so."
I don't think the problem is they claim the right to the land comes from somewhere else.
The problem is people already live in the land of the occupied territories and Israel keeps building more settlements there and expelling the Palestinians.
And I think the official position of the Palestinians is they accept the two state solution, but Israel doesn't and doesn't give any alternative. They just say they are negotiating, and keep on building more settlements and making the situation worse. : /
Perhaps I am mistaken, but my understanding was that Israel was "the promised land" that their god promised his "chosen people." That is how they justify the expelling of the Palestinians in 1947. Correct me if I do not have this correct.