As I've noted many times, I think a strategic withdrawl to defensible borders is and was the most sensible solution. Which would mean exiting most if not all of Gaza. Drawing the lines in the West Bank is far more important, and while I admit to being skeptical about Sharon's judgement and implementation, I think Ohlmert is far out of his league.
The opportunity to get it right came in 1967. The "Palestinans" should have been pushed out of the West Bank into Jordan and out of the Gaza into Egypt with no return allowed. In 1967 it could have been done and Israel's borders would not now be the absurd wasp-waisted model.