If you look at a map the 32nd parallel (north) runs through the state of Israel - and around the world to Korea where it conveniently separates the two sides. It's a pity they can't use the same line of latitude to create a dmz.That's a bit silly.
For a two state solution to work there will be winners and losers (hopefully leading to winners all round if the violence stops). If they all want everything then there will be no solution, ever.