I agree a solution must be found.

'the time has come to engage in a sulha and to stop killing one another.'
Prof Aharoni, a professor of sociology in Israel and abroad, and president of the World Congress of Egyptian Jews

Reconciliation, possibly along the path of the South African experience, is one solution.

This is not the short term 'fix' of the 'two nation state'

'after four decades of intensive Jewish settlement in the Palestinian territories it occupied during the 1967 war -- Israel has irreversibly cemented its grip on the land on which a Palestinian state might have been created.'

Two populations inhabit one piece of land and, if the land cannot be divided, it must be shared. Equally.

from Los angeles Times article
May 2008