What makes you think Israel would accept a binational state? Currently, the West Bank is essentially a binational state but of Apartheid nature and that's the best Israel would offer now.
Maybe in the Camp David 2000 and subsequently in Taba talks, Israel was willing to offer a little more than it has been willing to offer since then but even in 2000, a Bantustan was suggested, which Arafat rightly rejected; the Taba talks were promising because they allowed for a fair amount of contiguous nature of Palestinian land but Israelis were insistent on the total control of Jerusalem and the Muslim Holy Places, with possibly a bridge from the proposed Palestinian Capital in Ramallah to East Jerusalem-- but EJ would still be considered a sovereign Israeli territory. By conceding EJ as Israeli, one day the Israelis would do their Temple work--you know what that means.
But, as a good starting point as Taba was, Israelis wouldnt even want that. The rise of Netanyahu and the rising power of the Settlers is the main cause. In hindsight, people like Olmert and Ehud Barak look like angels compared with Netanyahu.
The bottomline remains: Israelis want the good, fertile land and want that as much as possible and don't want the Palestinians to have a dignified life as equals. Until the Israelis change that mindset, only violent resistance route remains for the Palestinians to gain their rights.