Israel is a signator of the Geneva Convention. It, therefore, has signed a treaty obligating it to provide services to people in territory it occupies.Draw the border (we might disagree on the lines) and declare it unilaterally. Leave, no more occupation. If (while) violence continues, let Jordan, Egypt and Syria provides services and jobs.
Indeed, unilateral separation seems the only answer. It's clear the Palestinians have no interest in peace.