I would suggest something very close to the "Geneva Accords". This is a plan design by Israelis and Palestinians not connected to the government.
It involved concessions by both sides, inluding a return to 1967 boundaries for Israel, and dropping the right of return for the Palestinians. This meets the basic needs of both sides. The 1967 boundaries dismantles the settlements and gives an economically and politically viable state to the Palestinians.
Dropping the demand of right of return ensures that Israel will survive as a predominantly Jewish state.
Incidently it is opposed by both leaderships who seem to have too much invested in violence to justify peace.
The reasons they say they oppose this plan are ridiculous as the US will ensure the military survival of Israel and it is clear that a thriving economy and something to lose will provide a very strong disincentive for terrorism.
Most of the anti-peace rhetoric is based on bigotry. But inevitably we will hear (maybe right here) that one side or the other doesn't want peace. But if you want peace, it is clear what concessions need to be made.
There is no excuse for supporting the inhumane actions of ether side.
Here is a link.
http://www.americantaskforce.org/geneva.htm
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"Blessed are the peacemakers,
for they will be called sons of God. "
- Jesus of Nazereth
