"Israelis want the two-state solution but they don't trust. They want it more than you think, sometimes more than the Palestinians." - Saeb Erekat, chief Palestinian negotiator in 1995-2003
The question makes some assumptions that are not universally accepted - notably relying on specific interpretation of the UN resolution 242 and assuming that a state based on 1967 lines is what the Palestinians want. Note also that Noam Chomsky is definitely not a representative of the mainstream public/political/legal opinions.
UNSC resolution 242
Much of the Wikipedia article about this resolution deals with the different interpretation of the resolution - specifically, whether it requires withdrawal from all the territories or only some of those. It has been largely agreed that the 1949 ceasefire line (also known as Green line or 1967 border) would require some adjustment, to ensure the security of the state of Israel. Indeed, border negotiations are a part of the final status negotiations as per Oslo agreements (which post-date the resolution 242.)
Note that the Green line is not a border, and does not coincide with the borders proposed by the UN partition plan of 1947.
Note also that the territories occupied by the Israeli forces in 1967 also include the Golan heights, which used to be under Syrian control, and which dominate the Palestine and notably the Sea of Galilee (the principal source of potable water) and therefore of strategic significance. It is inconceivable that Israel withdraws from the Golan heights without negotiating a peace agreement with Syria.
Oslo agreements
In 1990s majority of Israelis have clearly indicated their support for two-state solution, which would be roughly based on the Green line, as manifested by their support for the Oslo process, initiated by then prime-minister Yitzhak Rabin and foreign minister Shimon Peres (the two, together with Palestinian Leader Yasir Arafat shared the Nobel peace prize in 1994.)
![enter image description here](https://cdn.statically.io/img/i.sstatic.net/gpCg5.png)
The support has diminished, but far from vanished, after the Second Intifada of 2000-2005. Even Benjamin Netanyahu, upon becoming prime minister in 2009, declared his support for the two-state solution, and continue to maintain it as the official policy until recently.
Gaza disengagement of 2005
Israel did withdraw from Gaza, essentially to 1967 lines, under prime minister Ariel Sharon, and possibly planned such withdrawal from the West Bank. That this didn't happened is explained by Sharon becoming incapacitated by a stroke, and that Gaza began to pose more danger to Israel.
Withdrawal to 1967 lines would not bring peace
There are currently many influential actors in this conflict who are not satisfied with two-state solution based on 1967 borders. Notably, the official policy of the Palestinian movement Hamas, which ruled Gaza until recently, is liberation of "all of the Palestine, from the river to the sea, which means obliterating Israel."
To summarize: while two-state solution based on 1967 lines seems like a no-brainer to somebody who encounters this conflict for the first time, the actual state of affairs is more complicated.
Update
Regarding the public support for the two state solution, one could quote the opinion polls cited in the relevant Wikipedia article:
Many Palestinians and Israelis, as well as the Arab League,[71] have stated that they would accept a two-state solution based on 1949 Armistice Agreements, more commonly referred to as the "1967 borders". In a 2002 poll conducted by PIPA, 72% of both Palestinians and Israelis supported at that time a peace settlement based on the 1967 borders so long as each group could be reassured that the other side would be cooperative in making the necessary concessions for such a settlement.[72] A 2013 Gallup poll found 70% of Palestinians in the West Bank and 48% of Palestinians in Gaza Strip, together with 52% of Israelis supporting "an independent Palestinian state together with the state of Israel".[73]
[...]
In December 2022, support for a two-state solution was 33% among Palestinians, 34% among Israeli Jews, and 60% among Israeli Arabs. 82% of Israeli Jews and 75% of Palestinians believed that the other side would never accept the existence of their independent state.[90]
At the end of October 2023, the two-state solution had the support of 71.9% of Israeli Arabs and 28.6% of Israeli Jews.[91] In that same month, according to Gallup, just 24% of Palestinians supported a two-state solution, a drop from 59% in 2012.[92]
(The omitted paragraphs outline graduate erosion of the public support for the two-state solution in Israel and among the Palestinians.)
The graph below is from the poll by Pew research center, published on September 26, 2023 (that is two weeks before October 7):
![enter image description here](https://cdn.statically.io/img/i.sstatic.net/FUnwK.png)