Like it or not, only a two-state solution for Israel/Palestine could possibly be viable: a "democratic secular state" is a chimera. Israel needs to be persuaded to agree to lift the siege of Gaza, tear down the wall, remove the settlements from the West Bank and accept a deal based on 1967 borders – perhaps with the status of Jerusalem still to be decided, with the old city internationalised for a period. The Palestinians need to be persuaded that Israel will not do any of this until they renounce rocket attacks, suicide bombs and so forth. And of course they will not be convinced until Israel stops bombarding and blockading Gaza.
Again, sorry, but this seems to be roughly what Blair is proposing. Is there any credible alternative?