There have been MANY proposals for two state solutions, from Israel and from the UN and from other third parties that both sides were willing to listen to, going back to 1937. In each case, they've been rejected by Palestinian leaders. After 88 years of rejected proposals, relentless violence from the Palestinians with no sign of stopping, and generations of young people indoctrinated with hatred, it's no wonder the current government has no interest in concessions.
Yes, Palestine. A 2-state solution means 2 equal states, without 1 bossing the other around, and with each being equally protected against the other.
> the other has refused it.
Yes, israel: not only do they refuse proposed 2-state solutions, they even refuse proposed ceasefires that could lead to peace.
> That one side has been openly and proudly exterminating the other side wholesale
Yes, israel is actually doing this.
> one side is much more democratic than the other
How does israel feel about the democratic votes held in the UN regarding their behavior? Does israel respect that democracy?