I think there are better solutions. As I see it, in order for there to be some form of peace, there needs to be better parity. Palestine desperately needs development, of both its economy and defensive infrastructure, to negotiate from anything approaching equality. As long as Israel is in such a dominant position, they have no incentive to be conciliatory and the periodic bloodletting will continue. Which, of course, serves Netanyahu and his conservative bloc well. He's trying to stoke up the Palestinian hatred by blaming the Mufti for the Final Solution in front of the organizations supporting settlement in the occupied territories. The settlers, surrounded by people who hate their presence and what their security does to the local economy, naturally develop a siege mentality hardening their support of Likud and the other politicians putting them out there. It's an ugly political platform.
And if we don't have both sides wanting peace, it won't come. Netanyu and those like him don't want peace, and the Palestinians actually have a legitimate reason for wanting the Israelis completely gone from the region.
See, the British promised what is now Palestine and Israel to the Palestinians
before they even considered making it a Jewish homeland in return for Palestinian support during World War 2. From the Palestinian standpoint,
all of the land the Israelis occupy is their land. Plus, the last time there was a peaceful division of land between the two groups, the Israelis screwed it up and took over land with military might. The Palestinians have absolutely no reason to believe the Israelis will keep their word on any peace solution, and thus no reason to come to the bargaining table except to buy time for their next counter-attack.
Now, given how many times the Palestinians have violated ceasefires, you can bet the Israelis have no reason to trust them to keep a peace accord either. And thus no reason to come to the bargaining table except to buy time or create distractions while they set up their next attack.
This is a situation where neither side has any reason to trust the other, any reason to want peace with the other, and plenty of reason to want the other gone. Parity cannot even begin to address that. And until that changes, those two sides will never have peace.
And now you know why most of the UN is fully on the side of punishing the Israelis for the entire war while still punishing the Palestinians for what they've done.
Edit: Want to know the saddest thing of all? Take a look at what Hitler said the Jews would do in power as his reason for kicking them out and then trying to flat-out exterminate them. Then take a look at what Israel is actually doing. Try not to facepalm or despair.