A one-state solution would not overcome any of the major sticking points and would likely create many new ones.
For example, under a one-state solution, neither Palestinian Arabs nor Israeli Jews would be granted a natural homeland. This is an integral part of Israeli identity. 
Palestinians would also have major concerns. Even if there were assurances that they would have the same civil and political rights as Jews on paper, there would be concerns over their ability to exercise those rights. Palestinians make up just 20% of the population. They would almost certainly be subjected to an apartheid state with almost no political representation.