Make Jerusalem an international city under governance of the Sec Gen of the UN and move the UN there. Tear down the settlements on the West Bank or remove their IDF protection. Move out of the Occupied Territories (or divide them) and build two ten-foot high walls 50 yards apart down the border. The IDF on one side and the Palestinian police on the other and ANYONE caught trying to sneak across gets shot. Put the border crossings under the control of UN forces and tell both sides that if there is any trouble, they'll get their butts kicked back to last Tuesday and DO it a few times. The Israelis have their country, the Palestinian Arabs have their country and the killing stops.
Of course, no politician in his right mind on either side would ever dare suggest it. They could lose their job.

troll