The best solution for dealing with these people is to declare a Palestinian State and at the first attack from it, declare war on it.
I think the best option is to build the Palestinians a country in Sinai. It will consist of all green technology. No nuclear, coal or oil. Only solar, wind and hydro. All buildings will be green. All vehicles will be green. All products will be green. It will be the environmentalists wet dream.
They can have an airport provided it is on the southern tip of Sinai. And they cannot be militarized.
Put it before the UN for a vote. I guarantee the entire Arab world votes no.