The settlements and Zionist aggression led by the head of the Labor Party, David Ben-Gurion, planned for the forcible transfer (Plan Dalet) of the Palestinians while rejecting any Bi-National State Solution in favor of Partition. The alternative to Partition was a Unitary State.
On 31 August 1947, UNSCOP presented its recommendations to the UN General Assembly. Three of its members were allowed to put forward an alternative recommendation. The majority report advocated the partition of Palestine into two states, with an economic union. The designated Jewish state was to have most of the coastal area, western Galilee, and the Negev, and the rest was to become the Palestinian state. The minority report proposed a unitary state in Palestine based on the principle of democracy. It took considerable American Jewish lobbying and American diplomatic pressure, as well as a powerful speech by the Russian ambassador to the UN, to gain the necessary two-thirds majority in the Assembly for partition. Even though hardly any Palestinian or Arab diplomat made an effort to promote the alternative scheme, it won an equal number of supporters and detractors, showing that a considerable number of member states realized that imposing partition amounted to supporting one side and opposing the other.
A History of Modern Palestine by Ilan Pappe, Page 181
The settlements represent land-grabbing, and land-grabbing and peace-making don’t go together, it is one or the other. By its actions, if not always in its rhetoric, Israel has opted for land-grabbing and as we speak Israel is expanding settlements. So, Israel has been systematically destroying the basis for a viable Palestinian state and this is the declared objective of the Likud and Netanyahu who used to pretend to accept a two-state solution. In the lead up to the last election, he said there will be no Palestinian state on his watch. The expansion of settlements and the wall mean that there cannot be a viable Palestinian state with territorial contiguity. The most that the Palestinians can hope for is Bantustans, a series of enclaves surrounded by Israeli settlements and Israeli military bases.