Amos Oz, who is at the pinnacle of Israeli writing, epitomises the role of writer as a voice of hope, a moral guide, as well as the spinner of dream tales. Speaking recently at the Melbourne Town Hall, Oz captured the mood of progressive thought in Israel when he spoke of the pressing need for a two-state solution to resolve the Palestinian–Israeli crisis, where the warring forces would negotiate over the small tracts of land at issue, and would respect each other’s claims of sovereignty over their lands as indigenous peoples and equals. With his gift for striking images, Oz spoke of a time when Israel and Palestine would have embassies in each other’s countries. Israel, Oz declared, should be the first state to recognise the new state of Palestine. But is it all a dream?