What you call "surrender", I call compromise. Israel would also be compromising by giving up their ancient historical heartland in the West Bank. With neither side willing to compromise and calling any concession a "surrender", there will never be peace in that region. Also, you call it a "theory", which means that you think of the situation in philosophical abstract terms. It's like a friend of mine said, "Jews in America are willing to fight to the last Israeli, and Arabs in America are willing to fight to the last Palestinian--all in the comfort of their armchairs." These are people's lives we're dealing with. You also deny the fact that Israel proper even exists, because they philosophically have no borders. That's not the reality of the situation. If the Palestinians continue with extreme, unrealistic positions, they're the ones losing out in the end. Israel has the upper hand, and holds all the cards--politically, militarily, and economically. If you have any real-life Palestinian friends, then you're not doing them any favors.