Recognize the Palestinian citizens of Israel as a national minority with full equal rights at a personal level and cultural autonomy at a national level

Already an established principle. But everyone calls it racism? You sure that's what you want? It really doesn't work in Lebanon in India, but ok?

Pull back to the 1967 borders and hand over all territory in the Gaza strip, Arab Jerusalem and the West Bank to the elected representative body to form a Palestinian state with safe passage between the two parts through Israel-proper

Already an established principle.

Recognize the sovereignty and independence of the newly formed Palestinian state over its resources, air-space, international borders and territorial waters

How about gaurenteeing recognition from all Arab states who will be economic contributors of Israel. The prerequisite should be Israel and Palestine recognize each others statehood, and any financial contributor to either state must recognize both Israel and Palestine. The new state of Palestine should not be getting financial backing from states who do not recognize Israel. You're basically setting up the pins for the next war.

Legislate equality of Arabs and Jewish-Israelis as a basic law. Make any ethnic-based discrimination illegal

Palestinians don't want this. But ok?

Agree on the return into Israel proper of at least 200,000 refugees

More than 200,000 refugees and Palestinians have already moved to Israel

http://en.wikipedia.org/wiki/Palestinian_return_to_Israel

Offer fair compensation to all refugees that left in the Nakba and return of property to returnees and Palestinian citizens of Israel

You cannot quantify these things 3 generations and a world of technology down the road.

Set up a Truth and Reconciliation process to resolve all past crimes

The only real good plan. war crime trials and cry baby 'he said, she said' 'he hit me, she hit me' is just going to go round and around and around forever.