I read your proposed solution and have to agree with Nadav's comments there.

It isn't that I think the Palestinians don't deserve a state. They just don't deserve one at the expense of Israel's security and survival.

And the Palestinian track record has shown (including very recent Palestinian-held polls that show a majority in Gaza support Hamas, still!) that few Palestinians outside Israel are willing to live in peace with Israel.

It's beyond sad, because it perpetuates the violence that claims far too many innocents on both sides.