I think Confederation can be the best solution for the people of Israel and Palestine. They both will have each side and would have its own government, however can and would work together on security, resources, and economic issues. Free movement would be there and even residency between the two states, however citizens on each side of the country could vote only in their own elections. Moreover, the best solution can also to put aside the whole concept of Israeli-palestine agreement in favor of Israeli-Arab Agreement.