By the time Sharon went to the temple mount Arafat had already decided to launch the 2nd intifada.
The 2 state solution was possible in 2000 at Camp David in 2000 and in 2008 when Arafat and Abbas walked away from Barak's and Olmert's offers.
Einat Wilf's book The War of Return documents in exquisite detail that for a century the Arabs have been utterly consistent in rejecting any Jewish sovereignty. Full stop. Read it....or listen here: https://www.youtube.com/watch?v=TQDbqOUgSB0
The only solution is for the West Bank and Gazan Arabs to abandon their War of Return; their idea that 1948 can be reversed and that Jewish sovereignty is temporary.