Without any disrespect, I believe that a significant portion of what you just mentioned isn't accurate.

How can we pursue a two-state solution when Israel has been constructing settlements in the West Bank, which are clearly illegal under international law? Am I overlooking something here?

You mentioned terrorism, and many people argue that Israel's continuous bombings in Gaza and its ongoing occupation of Palestinian territories could be seen as a form of terrorism. Thi is evident in that picture above.

Even if we assume everything you've said is true, it still doesn't justify apartheid unless you're framing it as some kind of holy war.