Your solution would take too long and the terrorists don't care how many they murder.
Israel should not only do as you suggestl they should immediately make plans to wipe out Islamic Jihad, Hamas, PLO, PLA, etc. post haste and do the same to whoever else declares war upon them which these terrorists most certainly have done.
If those groups you mention react to the Golan solution with more attacks...then each attack will only hasten the overall outcome as their operating territory reduces with each attack.
This plan puts the oweness on the Palestinian people where it belongs. Either they rid themselves of the thugs and those who supprt them from their midst...or cease to live within Israeli territory, period.
All the while, as the plan indicates, the Israeli IDF will prosecute the speciufic attacks and those conducting them.
Fregards