Now that you mention it, I've heard of the Elon plan. It's intriguing, but would Jordan agree to absorb the Arabs in the West Bank (or Egypt the Arabs in Gaza, for that matter)? Personally, I think Israel should have negotiated the return of the West Bank to Jordan a long time ago. By far, I prefer this "two-state solution" -- Israel and Jordan.
Israel should never have been pressured to return the Sinai without settling the refugee issue. Probably the most geographically feasable proposal for a state consisted of southern Gaza and a contiguous portion of the Sinai encompassing Al Arish. Won't happen now. But you're right, peace with either Egypt or Jordan is impossible without resolution of the refugee problem. IMO, they should be settled where they are, in Jordan, Syria, and Lebanon, not returned to the West Bank if a state does break out.
The alternative (I don't think Jordan would agree either, but they could be prodded) would be a unilateral separation, creating a state in Gaza and part of the West Bank. Terrorists expelled, peaceful palestinians stay where they are, but are citizens of the new "palestine", rather than Jordan, but not Israel.