My idea is a special federal solution:
Three states for two people in one land:
One federal state which has supranational sovereignty on the undivided land and over two independent nation-states, each one ruling on their citizen personally.
There will be no demographic problem anymore: every citizen could live wherever he wants and will vote only for its own national parliament.
The federal government will be composed on a parity basis.
Jerusalem will have a special status as the capital of the Federation.
Like the conflict itself, this solution has no real precedent, but will become a living reality if you want so.
Here are more texts about this solution:
What do you think about it?