The Arabs will never make territorial concessions. They will insist that Eretz Yisrael be art of an Arab Islamic state (even if it is an autonomous Hebrew speaking entity with its own army). They will insist that Arab Muslims are considered first class citizens (which they certainly aren’t). Our insistence that Arab Muslim be a tolerate minority in places they have lived in for centuries is the cause of the war (a war that, BTW, the gedolim opposed, and had the zionists listened to the gedolim, the war could have been avoided).
Hareidim demand that we can control our own affairs. We don’t want to impose our laws on the goyim. Thus Hareidim are in a better position to negotiate. We might be willing to agree to ban abortion, ban public same-gender you know what, require wearing decent clothes in public, prohibit ribis, etc., as the price of peace. Indeed, if the Arabs agreed to let Jews live anywhere in the Land of Israel, I suspect even many of the settlers might agree.But as long as we insist on “sovereign” status (which, BTW, means no one, even G-d, is above the state – meaning the whole idea of soverignity is apikoresdik), there is no hope for peace – meaning the eventual end will be like all other nations, which sooner later, means being something found only in history books.