This is what Olmert's plan is if he sticks to the idea of keeping Ariel, Kedumim, and the Jordan Valley.
This was Israel and the West Bank and Gaza Strip before 1967. Some Palestinians claim to want the West Bank and Gaza Strip as their state. Abbas has been ambiguous on this. Hamas has not; they reject it, they want nothing less than every square inch of land between the Mediteranean and the Jordan River.
My hope is that Olmert will carry out his plan but decide to leave Ariel, Kedumim, and the Jordan Valley. The only problem there is that he was elected after saying he wouldn't leave those places, which would mean the Right would revolt again, like they did against Sharon for leaving Gaza.