IMO you're going about this from the wrong direction.
Any people who think their land is being taken away, who can barely afford to eat because of sanctions and blockades, who see the armed soldiers of another country on their streets, who feel they're being oppressed and occupied is going to have popular support for militant insurgency. Doesn't matter if it's Palestine or Peru. There's hundreds of examples through history, but we dont' even need to look back that far to our own forays into the middle east.
So if we're ever going to have 2 state peace, Palestinians (and Israeli's!!) need to be able to thrive economically, feel that their borders are secure long term and they're safe. Do that, and the support of violence will disappear and moderates will emerge and take over.
So no, obviously just handing land back won't immediately solve the problem, but if you want to end the violence with 2 states then handing back land is going to have to happen.
For the last 15 years, that's been off the table, so peace has been off the table.