Well done,
@AssignedEva; I could be wrong but I'm pretty sure you're the first person in nearly 400 pages to resort to using the maps that lie.
With regard to:
https://kiwifarms.st/attachments/map-kushner-2020-4-jpg.5406673/, the actual compromise which reflected the then-current demographics of the region [which, of course, included many non-native Arab migrants with no tie to area] was actually the 1922 partition of the original Mandate for Palestine into an approximately 78% "Arab" state [known as "Arab Palestine", later "Transjordan" and, finally, the Hashemite Kingdom of Jordan] and a 22% "Jewish" Palestine later to become the State of Israel.

...the Jews shouldn't have all just moved in and kicked them out of their lands.
Except that they didn't.
There's a shit-ton of facts an nuance that you clearly ignore and that I'm not spending all day typing out but, in short, Jews and Arabs lived together in the sparsely populated southwestern Levant for decades under the Ottoman Empire up through 1850, which is when various persons and individuals began the project of building a "national homeland" in the historic region of Palestine. This brought Jews primarily from Europe to that region, and it brought migratory Arabs mostly from Egypt, Arabia and what would become Syria, Iraq, etc. [but mostly from Egypt and Hashemites]. This all went about rather uneventfully until the post-WWI era and the violence of the early 1920s - violence exacerbated by some people doing some things in Europe circa 1933-1945... Minor unpleasantness you may have heard of.
Anyway, with the increased migration of the post-WWII era and the fact that the Hashemite cast-offs and other unwanted Arab migrants abjectly refused to live peacefully within a "Jewish" state and the nations roundabout agitating them to rise up because they'd help them push the Jews into the sea and the UN trying to throw its weight around and force the "compromise" you cited [when they didn't actually have any authority in the matter and almost no one cared what they thought anyway], the Jews simply declared independence and you know the results.
None of it had to happen; the Arabs of the region that chose to remain in Jewish Palestine after the 1922 partition could have chosen to live in peace, but their pride would never allow them to live under a "Jewish" state [even if they'd already lived in peace together for almost seventy years under the Ottomans], so they went full retard, joined up with the armies of, what...
five other Arab nations[?] in an attempt to drive the Jews into the sea. And they couldn't get it done and found themselves on the "wrong" side of the "green line" [which, by the way, was never a "border"].
And persons such as yourself think it's somehow "unfair" that they lost what they had because of it and aren't going to be welcomed back under a "right of return" to come in, seize whatever land they might want [after giving up 77% of historic Palestine in 1922, giving up control of Gaza [State 3], the West Bank [State 4] under threat of murdering anyone who objects.
Do tell: if people did that in whatever country you're from, what would happen to them?
The original goal of the Oslo Accords was that most of the land would be ceded to Palestinians within about 5 years, allowing them to have a contiguous territory under their sovereign control rather than a bunch of scattered isolated settlements they have to ask the Israelis to leave.
Not exactly a great deal, to be sure... But, as you mention, over time the land restrictions were to go away congruent with the "palestinians" behaving themselves, acting like human beings and good neighbors rather than the niggers that they are.
For a variety of reasons including corruption, a failure of peace negotiations and Israelis moving to prime agricultural land in Area C to try and make it permanently Israel, this has not happened. Ceding Area C within a reasonable timeline would have in no way helped with the Gaza situation, but it could have significantly increased goodwill among Palestinians and maybe could have lead to a different outcome further down the line.
If there is ever to be a[nother] Arab state carved out of Jewish Palestine in the West Bank, Israel proper is going to have to in good faith cede control. As I said in an earlier post, the Jews aren't going to be pushed in the sea and the descendants of the Hashemite cast-offs and other unwanted Arab migrants aren't getting nuked. Both groups are there to stay, and both are going to have to accept a compromise they don't like.
Prior to Saturday I would have said that the best result would be either total withdrawl of Israeli settlers [or exchange of certain border settlements for additional land north and south of the present West Bank border and, with some restrictions [control of airspace], total withdrawal of security forces from the West Bank and some sort of land-bridge to Gaza, securing that border and giving the PA five-ten years to put a functional nation-state together.
Had the 2008 agreement been implemented, settlers in most of the West Bank would have been moved out, land would have been swapped according to a map that was posted earlier and the "Area C" shenanigans would have ended. I suspect that, had there been an agreement the Area A/B checkpoint issues would also have been dealt with in time and the region would have been continuous rather than look like a badly gerrymandered congressional district.
The ship has probably sailed on anything but perpetual Israeli control of Gaza and its, eventual, depopulation or the population being forcefully migrated to the West Bank [or elsewhere].
One of the points of contention in the Camp David summit was that Arafat essentially wanted the 90% of the West Bank to end up Palestinian (with some degree of land swap) and Israel supposedly wanted the West Bank split up into disconnected "bantustans" (this is disputed, and also the use of the word bantustans was designed to piss off the Israeli negotiators).
It wasn't a "point of contention" so much as it was, "we're not going to do this immediately". As you already pointed out, there was thinking that this would be a gradual drawdown of Israeli involvement contingent on the PA being able to keep their more extreme elements from misbehaving.
But then also Arafat wanted the displaced Palestinians to have the option of a right of return to their homes they fled during the Nakba and Israel said no because they didn't want potentially a million Palestinians moving in all over Israel.
Had you been in their position I'm sure you'd think that with a
two, three, four state solution already implented and the fact that the majority of "palestinans" weren't even descended from people who were expelled for taking up arms in the 1948 attempted slaughter that allowing any professed "palestinian" to walk into any part of a [now even more reduced] State of Israel, claim any piece of land he liked and murder anyone who objected would be a bridge too far.
If this had gone differently, maybe the Gaza strip Palestinians wouldn't have voted in Hamas, and this could have been prevented. But I don't think it would ever have gone differently because there was never going to be a two-state solution both sides could really be happy with.
Especially when there had already been a two-state solution and the other state had already had its fill of dealing with the "palestinians".