<<Who DOES desire a two state solution?>>
I know 100% that the Israeli political leadership, regardless of party, does NOT want a two-state solution. They want the whole ball of wax. I'll qualify that a little bit - - the Israelis might take a two-state solution as a temporary way-station on the road to a total ethnic cleansing of the entire Gaza Strip and West Bank if the Palestinian state were sufficiently carved up into enclaves so as to be non-viable in the long run (say the next 50 years) and they could count on it falling into their hands within that time frame.
To me, it's a no-brainer that the Israelis, who certainly know how to pay lip-service to the idea of a two-state solution, do not really want it, and will do, as they have done in the past, everything within their power to frustrate it and at the same time maintain the illusion of accepting it.
The real issue is, do the Palestinians want it? IMHO, they'd have to be nuts to want it, although, like the Israelis, they feel they have to pay lip-service to the idea of it. In real life, any Palestinian state that emerges alongside the State of Israel, would be so hemmed in by restrictions on its sovereignty (much like Gaza would be even if the blockade were lifted tomorrow) that it would simply never achieve viability. It would always be dependent on Israel for its most basic needs. In order for a Palestinian state to exist as a viable entity, it would have to include the land of the present State of Israel. Nevertheless, I'd guess that the Palestinians are truly divided on the issue - - some are so traumatized and demoralized by the current occupation that they probably would be willing to accept less than the full loaf that they'd receive in any realistic approximation of a two-state solution. Others, recognizing the unworkability of the project, but nevertheless seeing it as a tactical victory and a way-station in the long struggle for a fully independent Arab Palestine, would hold their noses and pretend to be also in favour of two states. I don't think in the long run the Palestinians would be content with a two-state solution.
Another factor to consider is the "demographic time bomb," i.e. a much faster natural rate of increase among the Palestinians and the Israeli Arabs than among the Israeli Jews. Effectively the DTB puts time on the side of the Palestinians and is a strong disincentive towards acceptance of a two-state solution as anything other than a temporary tactical struggle in their Long War for an all-Arab Palestine.
The only actors who really would favour a two-state solution, as far as I can see, are the American puppet states in the Middle East, specifially Jordan, Egypt, Saudi Arabia and the Gulf States. They don't really give a shit about the Palestinians or what's viable or non-viable for them, and they'd like to see an immediate resolution of the Palestinian claims. The longer the dispute goes on, the more their public demands action, which would bring them into conflict with the wishes of their American bosses. The longer they delay the action their population demands, the shakier their hold on power becomes. So they're faced with an on-going dog-fight but have no dog i n the fight; all they know is that they have nothing to gain from the fight going on and a lot to lose if it never stops.
