True. Hamas has offered this since 2017 [1] but Israel has never honestly offered it. And it's practically impossible anyway at this point with all the illegal (under international law) settlements in the west bank, supported by the IDF. Something you wouldn't do if you were trying to move toward a "two state solution", but something you would do if that was just talk intended to delay any implementation of Palestinian human rights in Israeli occupied territory while finalizing a drawn out campaign of ethnic cleansing as fast as you think the US will allow.

[1]: https://www.theguardian.com/world/2017/may/01/hamas-new-char...

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?