The problem really is that Netanyahu (who was actually the one to explain how the two could live together happily whilst both would also have their own government). It never really happened. Instead reality stepped in and the Palestinians have played the role of Goats for some of the meaner Israelis since 1948. It would be fairly easy to list the problems that the Palestinians have had to live with, you know, little stuff like an Israeli liking where the Palestinian lives and throws out the Palestinians and takes it away from them, or sending groups of Israeli teenagers into Palestinean groups to kill a couple for the heck of it (its a long, long, list of truly bad stuff).

Anyway, that was the system that they agreed on because the Israelis didn't agree with the two state solution and the system they got was good for the Israelis and not for the Palestinians. Biden, right now, is trying pretty hard to create a new nation for the Palestineans. One can only wonder if he can pull it off but he is trying!