The idea of a two state solution has gained a lot of ground in time when its quickly apparent that both sides can't live together on the same land, but what's surprising is that people think the two groups can share independent borders. The two state solution is fine for a Jewish state, but in practice will be largely impossible to implement.
No, a two-state solution does not uphold the idea of a Jewish state. The Jews were given the land of Israel following the atrocities of World War Two. After what happened, giving them that land was the least the world could do to in some way compensate the Jews for the terrible loss of live and destruction. To ask them to give large portions of it away is unfair. A two-state solution does not uphold the idea of a Jewish state.