I regret not making my assumption explicit: a democracy in which there is a just constitution that guarantees the rights of everyone equally. I would not model this democracy based on the USA, because it is such a broken system. In the USA, only one party is in power at a time, which makes problems like the dictatorship of the majority a real concern. Better are European systems where nobody ever gets an absolute majority and always has to form a coalition. It’s of course also not without its problems and I don’t profess to have all the solutions.
What I don’t like is just saying that the two state solution is ideal, but immediately saying it’s not feasible for something the Palestinians have done. This again places the Israeli needs over the Palestinians and disregard the vastly bigger crimes Israel has committed onto the Palestinian population over the years.
Terrorists is just code for Arabs attacking civilians. Non-arabs attacking Arab civilians, it’s called “the U.S. military” or “IDF”.