There was no peaceful compromise in 1947 or 1948. The Partition plan was first introduced at the league of Nations, or the Peel Commission. It was not a peaceful compromise. It would have to be installed by military force and a military force would be needed to enforce it in perpetuity. Furthermore the Arab people living in Palestine had no voice in the matter. The only vote in the UN about that partition plan was a simple non-binding resolution in the General Assembly. All the Arab nations either walked out or voted no. It was suppose to be taken up by the UNSC who had more power than the GA. But since war broke out in the wholey land after that vote, it became moot.
And doing nothing but fostering intergenerational hate hasn't helped their cause on bit. Neither has the persistent cross border terrorism.
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