Lets get one thing straight..
Its not that simple, of course. Israel is a thriving economy and the Palestinians are essentially similiar to the working mexican population in the United states. The work that is done in Israel by these people amounts to a bond between the countries, that can't be broken. If the Palestinian labor were subtracted from the Jewish economy, there would be a reckoning. On the other hand, if Israeli money and work were taken away from the Palestinian economy, there would be an equally disruptive hit to the Palestinians.
Half the reason Al Qaeda exists at all is because the problem still exists. Even though, imho, there is a way to set it straight. Lets not forget the bug-fuck nutzo religious conservative groups who actually believe that the end of the world is coming tomorrow, and keep dealing the rapture in as a driver to american foreign policy. This internecine conflict is a a major food source for all of these groups, none of whom have a positive effect on nation-states. So what, would you ask, would be my solution. I'll tell you.
Palestine becomes a state of Israel . The first thing that comes to your mind is. Oh, but Palestine is arabic and the Israelis are jews and that won't work because they're two different worldviews? Lets just say that America, for the sake of an argument, is going to try to be a beacon of democracy again and not just oil rights. Then, wouldn't it be nice if the writings of Thomas Jefferson teach us to separate Church and state. Gee whiz. Deal religion out of the picture there, and what do you get? No conflict. And yes, I know that Arabic governments have ideals that come out of the koran. So what. A state government can make state laws. In the end almost all Arabic democracies share common traits that are not dissimiliar to the Knesset and representation in that body would not be a big jump from those neighboring states and their polity. There would not be a significant rift due to religion.
Ok, you might say. With Hamas in power as a "terrorist organization" this would be condoning terrorism. Bah, humbug. Want to know terrorism? Sneaking up on people and killing them? Ok. Go rent "Munich" at the store. Its a Steven Spielburg flick about a group of Mosad tracking down the perps who did the Munich olympics job in the seventies. Oh, by the way. The group ends up bumping off a Literary professor, a respected businessman and several other people on their way to accomplishing their goals. Including a russian hooker. All in the name of putting the PLO in their place. Tell me each and every hit they make is dead solid perfect and I will sell you some swamp land in florida. As much as we would like to beat our chest about how terrorism kills innocent people just try looking into what happens on the six out of ten sanctions that hit the wrong mark. Just scratch the surface, about Israels "collateral damage" and your hair will turn snow white when you read about. Israel, god love them, has had 30 years to put down this conflict and still continue to throw the job. What is terrorism, but a goat fuck? The conflict is internecine and interterroristic (did I just invent a word?)
Ah, Let's not forget the good old "Oh, the Jews might like this one but the palestinians will never go for it" . I say. Define "never". This is the best objection to my solution, of them all. I love to think about this one. How would Palestine, becoming a strong state of Israel, affect palestinians? Free passage? No more shakedowns. Oh, no. More. The Palestinians, get the following benefits: better schools, much of their stolen land back by proxy (ie. now protected by the same rules and rights that the Israelis apply to take the land. court arbitration of land dispute settlements where they can lawyer up and be protected by a jury of their peers? in their own homeland. on and on.). And what of the land they don't have, the land that everyone cares about - the Gaza strip - is now under the same state government and under state and local police protection and control. Nut jubs that have bothered the palestinians themselves for years would be subject to a policing that is not only comprised of the well equipped and disciplined members of the IDF but also of members of the same people that could actually target and track them. Its like arming the part of Palestine that wants to be sane. There is a vast middle class in Palestine that is tired of bombs going off in their front yard that would buy this thing.
And finaly, just to set things straight - there is a Geopolitical effect. If America, Israel and Palestine backed this humble solution, they would cut the rug right out from under AQ (bloodsucking leech that it is) and get the rest of the work done in stabilizing the region a big boost. Lord, we might even staunch the flow of black market weapons into Iraq. And it would help Israel to stop taking such an anatagonistic viewpoint to their arabic neighbors when a big fat chunk of their voting bloc turns arabic. Hez'bolla would think twice about attacking an israel that comprised Palestine within its borders. So all thats left is to find someone who can lead us to this new land of peace and milk and honey. Hey, how about Bill Richardson? Hmm. Lets see. Nominated four times for the nobel peace prize. Heard he's looking for a job these days. Unless of course, you're still preparing for the rapture.
Here's a joke I heard. You might like it. Unless you're my celibate*, catholic, political activist friend and then you'll still like it.
Two terrorists meet each other in the desert. The conversation naturally drifts towards talk of their children. And so, one terrorist breaks out a picture of his son and says .. This is my son, Elijah. He was shot in downtown gaza as he was preparing to attack the terrorists.. .. the other Terrorist breaks out her wallet and says "This is my daughter, Lakshmi. She detonated herself right in the heart of the infidel and destroyed a marketplace. " ... The first terrorist, nods his head, and says..
"Kids... they blow up so fast ."
* Celibate here means, that he is really celibate. He goes to meet girls and carries his bible. I think thats cool. No . Really.