Required for Peace:
The Palestinians too, are guilty of allowing other issues to cloud their judgment and supersede their desire for peace. It is the Israeli government, though, that needs to take the first step.
Until Israel puts Zionism back in its box - having served its purpose - and makes some sort of compromise to counter the Palestinian views caused by the years of the cruel occupation and Zionist land grabs, there will be no compromise from the Palestinians. Until there is compromise from the Palestinians, especially over the right of return - which Israel cannot grant because it would end their Jewish status - there will be no final status agreements and no lasting peace.
Israel won't take the first step until the international community starts holding it accountable for its actions, and this won't happen until the U.S. stops shielding it from the UNSC. This, if it ever happens, will likely come in line with U.S. pressure on Israel to commit to achieving a lasting peace with the Palestinians, and perhaps a threat to withdraw support if they don't. This would place significant pressure on the Israeli government to commit to peace, but will only happen if U.S. interests in the region change drastically.
If Israel committed unquestioningly to peace, after the initial doubts, it would undoubtedly trigger a similar commitment from the Palestinian population and government. Such a commitment from both sides is what is really needed to end this conflict.