It isn't true that compromise is the way forward. Having agreed to renounce claims to 78% of Palestine, what have the Palestinians to compromise with. The way forward is for Israel to withdraw from the West Bank and Gaza and agree to share Jerusalem.
A final point: though only a fool would think that blowing up a university canteen is a good idea, this bombing would not have occurred if an agreement between Hamas and Israel to limit fighting to military targets in the Occupied Territories had not been thwarted by the recent air attack on Gaza.

A compromise would be to observe successive UN resolutions that demand that Israel withdraws completely from the territories occupied in and after 1967 (including the closure of the illegal settlements) and the institution of a fully democratic state with full control over Palestinian territorial resources and affairs. On the other side, the jihadis must be disarmed and the rights of Israeli citizens to live in peace and freedom.
As for any 'deal' between the Israeli government and Hamas, I doubt either side would take such a thing seriously for long than a few days.

Whilst the Israelis and Palestinians still stake a claim to the same piece of land, there will always be conflict. This conflict can only be solved if the concept of nation-states is abolished worldwide, along with the concept of individual races, as this would also remove the concept of racism. Sadly this will probably only be achieved after another century or two of more bloodshed...

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Firing a missile into a heavily crowded area of apartments,killing 17 (current death toll inc. 9 children) the night before Hamas were due to announce a suspension of all suicide bombings and attacks inside Isreal is deemed by Dubya to be 'heavyhanded'...whilst todays bombing is a 'horrific act of terror'...
i'm not disagreeing with Bush about what happened today, but i find the double standards he applies sick....
and in any case Israeli intelligence knew that Hamas were ready to announce a ceasefire and knew how they'd react to the missile attack last week,so i think Sharon too has the blood of innocent civilians on his hands today....
And by the by ......man is he fat?!?!?.....

Dan: au contraire, a similar deal was fairly well respected by Hezbollah and the IDF during the final years of the Israeli occupation of Lebanon. In this case, Benjamin Ben-Eliezer, the Israel 'defence' minister, told the Knesset on Monday that he was aware of the Hamas offer not to attack civilians when he sanctioned the attack on Hamas' military commander (and nine children) last week. Of course, ke knew perfectly well that the Gaza attack would scupper any such deal, which is exactly what the Israeli government wants. One of the many arguments against the bombing of Israeli civilians is that it provides the Israeli government with another excuse for not pulling out of the 22% of Mandate Palestine that the Palestinians agreed to accept at Oslo.

And as for disarming the jihadis, as you call them, you may be sincere in wanting peace but very few people who insist on conditions like that, wherever in the world, are sincere. Surrender of arms is always seen as moral surrender, and no peace can be built on humiliation like that.

Thomas J: yes, the way forward is no states. But we need a dictatorship of the proletariat first, remember. I'm for letting another part of the world try it first.