There are lots of Israelis living in the west bank, they aren't going anywhere nor is their presence harmful to anyone (nationalist feelings aside). Palastinians would vote to the PA, and they will decide their own taxes and laws, ext (as is the case now). The Israelis will vote to the Knesset. Besides the lack of arms to the PA, this isn't too far from where it is now. This is of course not apartheid, just a reasonable way to live side by side.
> There are lots of Israelis living in the west bank, they aren't going anywhere
This problem can be easily solved: let everybody out, don't let anybody in, don't let them vote (as it happens with Israelis living in other countries). We did it twice: Sinai peninsula and Gaza Strip, we can do it again.
But this is very small problem. The real one is return of 2-5 millions of Palestinian refugees. Integrating them into Israel society would take time and effort.
Helge, this kind of suggestions may be reasoned from your moral grounds (which I don't share), but in terms of getting towards peace - they are so far from anything Israel would consider they venture into the realm of fantasy and thus will just stir hatred and conflict which clearly mainly harms the Palestinians. To end the conflict what the PA needs now more than fantasies is a dose of reality.
