Here is The Ghost's proposed peace plan for Palestine.
1) There is a One State solution. There is no "State of Israel". There is no "State of Palestine". There is a state with an agreed upon name. I suggest "Judea" or "Jerusalem" or something else historical to both parties.
2) The Bantustans are ended. Palestinians are 1005 free to live and conduct their business as any other citizen of the state of [enter name from item 1].
3) Land Justice:
A) Palestinians are to be compensated for the land taken from them to create what was previously Israel.To that end there are 2 options:
1) Payment at current land and/or property value to whoever owned the land prior to 1948. In the case that person is dead, their immediate family can be paid. This can be split among siblings.
2) Rental payment to previous Palestinian owners at market rates. As with item one descendants can be paid where the previous owner is deceased.
3) Failing to abide by items One or Two, Settler family or their descendants must vacate the premises. Where the prior owner is unknown or cannot be found, the funds will go to establish a bank available to the previously disenfranchised.
In return. Hamas, Palestinian Authority, Islamic Jihad and whatever other armed group is to be disbanded. Any person found to be a member of such a group after the agreement is in effect shall be executed.
Once the agreement is settled, the border of the state shall be recognized by all parties, aggression against this state shall be condemned and any retaliation recognized as justified. This includes atomic and other mass destruction weapons.
Religious and ethnic based violence will not be tolerated. Any party engaging in such violence shall be executed. In cases where that person is caught *in the act* such execution shall be summary and immediate.
Once agreed upon, "bygones are bygones". Any party found to be conspiring for retaliation due to pre-agreement incidents will be imprisoned and their all assets confiscated.
At the implementation of The Agreement, the current government is dissolved. A caretaker government will run for 6 months, in order for elections to be held. This caretaker government shall only do as much as is necessary to run the government. No legislation shall be passed (other than needed to run the government) until the new government is seated.
Of course there are details to be hashed out but this is the most equitable solution that addresses the root cause of the conflict.