Look accepting Isreal is fine there is no issue. Only two states were built on foundation or basis of religion - Pakistan and Isreal.
No one cares of Palestine - while I disgree whole heartedly with the draconian nazi apartheid policies of Bibi and lunatic right fringe backed by evangelists (whose motivation is to speed up the coming of the messiah); regretfully PLO or Hamas has shown any capabilities of moving anywhere except for internal strife while the populus at large rot. Dont expect any US administration to say anything either when none of the Arab states have balls (... they were castrated in prior wars!).
With regards to Kashmir, proposal put by Mr Musharaf was credible but hawks on both sides did not want to see it done - it still remains a viable pre-position - there India has fallen to a baffoon/right wing leadership while Mr Sharif has no spine except to amass personal wealth like our dear leader here at home.
Please dont put always Kashmir/Palestine as a crying tears when there are millions of moslems facing genocide either in Burma, Darfur to name a few - when are their voices going to be heard?
Just reflecting my thoughts.