I recently attended a presentation by Barbra Sokol- noted Isreali author and a Director of Public Relations for Israel. (she is a wonderful speaker with great stories) She presented 4 alternatives for Israel and explained why all 4 of them were bad.   She did not have any solutions.   She did say that people in Israel are now open to land for peace- something that did not exist in the past.   On the other hand, they will not(I repeat) will not negotiate with Arafat.   

The Palestinians were given a bad deal.   They were told by the arabs in 1948 that as soon as Israel became a state, they would "drive them into the sea" and the Palestinians would be given their land. The Palestinians have been waiting 50 years for that to happen with no land in site.   Israel doesn't want them.   The arabs don't want them.

At the end of her presentation I suggested a fifth alternative.   I believe in the history of mankind that peace only comes after total unconditional victory.   Either the Palestinians need to go back to Jordan (Palestinian have never had their own country or land or government or currncy or constitution) or be destroyed.   Sokol rejected that as immoral and not even to be considered.

Given that thinking, I don't see a solution.   I only see terrorism and retaliation.   I only see Arafat getting wealthy while his people live in poverty and blow themselves up.   I only see the rest of the middle east not really caring about Isreal and the Palestinians killing each other.   And finally, I only see that people in the USA turning away and not wanting to deal with it.    The prevailing ignorance of uninformed people is that both of them are wrong and they wish they would both stop.