Those are contradictory statements one after the other.
How will you create a state, without land, with just a bunch of enclaves that are walled off, and are not even contiguous?
No contradiction unless you have an alternate version of history. The region is currently rule by Israel. before that it was Jordan, the Brits, the Ottomans, Abbasids, Ayyubid , Crusaders, Byzantines, Romans, .... Except for very brief periods between empires, the last independent Kingdom in the region was Judea.
As for borders, Olmert offered a completely contiguous West bank with a corridor to Gaza. And if you think countries have to be contiguous, you may want to have a word with your own country about their border with Bangladesh.
The UN says that the only solution is a negotiated peace based on the pre-67 lines but can include land swaps. But what do they know.