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So I looked it up and according to Britannica both sides disagreed on the two state solution and Rabin was assassinated by a Jewish extremist over it.Right of return is a poison pill. As for water rights, that wasn’t one of the divisive issues. Water is the single most rational and practical point of any negotiation in land sharing/division. Obviously one side doesn’t get to have all the water and other gets none. That’s not what led to the collapse of the two state solution.
And the terms Israel demanded were much better for them than the Palestinians.
So it isn’t really fair to say “the Palestinians rejected the two state solution”. More accurately they rejected Israel’s two state solution, which would have benefitted Israel far more than it did Palestine.
When it comes to American opinion about the situation ours differs greatly from that of many Israelis. Haaretz would be condemned by Israel as terrorist sympathizers if it wasn’t an Israeli paper. Hardliners do anyway.

Two-state solution | Meaning, Map, Israeli-Palestinian Conflict, & Borders | Britannica
The two-state solution is a proposed framework for resolving the Israeli-Palestinian conflict by establishing two states for two peoples: Israel for the Jewish people and Palestine for the Palestinian people.
