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Great analysis. Where I see the pain points are

1. Resolution of property claims by Palestinians whose homes and farms came into Israeli possession after partition. Although restitution or reclamation (through eminent domain) could be resolved through international arbitration and awards from an accompanying peace and reconciliation fund provided through contributions by a coalition, money might not be seen as an adequate remedy.

2. Can secular Zionism (the power to assure never again) be maintained in a pluralistic society?

3. Can religious Zionism (the privileged claims to Israel based on religious understanding of the Old Testament ) be squared with the less expansive but still potent claims to Jerusalem based on the Koran?

4. What stable political equilibrium can be maintained long-term in light of demographic change? Palestinian and Orthodox Jewish birth rates are elevated compared to the more urban and secular Jewish population. Looking at a future electorate with a 45/45/10, assuming that the 10% is most vested in plurality, can stable governing coalitions be formed without drawing on substantial participation of each of the other factions?

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Right of return is always the sticking point - but one the international community could solve through contribution a pile of money for compensation.

The long-term dynamics of political coalitions would be interesting - but that's politics in any nation, but the point is there's little prospect that secular Jews, secular Palestinians, religious Palestinians, religious Jews, would each ever get a stable majority but woud need to build a multi-group coalition to govern.

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