The Agony of the Promised Land

As in the case of Solomon, two peoples holding a tiny peace of land and each claiming it is theirs. But unlike Solomon's case, a land can be divided, which seems to be the only solution to the conflict; and yet the protagonists are as far as ever from reaching this obvious conclusion. Fanatic Jews want all the Biblical land, and fanatic Palestinians want 'all or nothing', and while on the Israeli camp some voices of reason and moderation can be heard, the Palestinians resorted to violence and terror, undermining their own cause. What are the chances of reconciliation under such circumstances? Is there any hope for peace?