The occupied territories and East Jerusalem must be returned. Would it have been better to have made Israel a little bigger after the War? Sure, but we didn't and depending on whose map you want to put your finger it is either bigger or smaller than the biblical period.
The simple fact is that the Palestinians will never stop until they get the land back and get to settle in Jerusalem...they can be told to make their capitol elswhere...a yoke Israel has worn all these years in some circles.
They were part of Jordan, which used them to launch their attack against Israel in 1967. Israel took control of the lands legitimately to secure their borders against further invasion and attack by a proven aggressor.
You can't give something "back" to someone who never had it in the first pace. If Israel "gave back" these lands, she would give them to Jordan.
Do you think that would advance the cause of a Palestinian state? If so, why didn't Jordan create a Palestinian state out of these lands when they had them the first time?
You see, you have sucked down the premise that what is Israel's is actually Palestine's just because some terrorists say so.
Quite shallow of you really, and stupid.