The only other choice would be to kill the terrorists, and everyone who supports them. They'll have to that in the end anyway, as most of the Palies won't settle for anything less than pushing all the Jews into the sea.
You are wrong. Many if not most Palestinians would love to just live in peace. However, their leadership and their Arab bretheren use them as a political tool to attack Israel and many young, indoctrinated, uneducated Palestinians living in poverty make excellent cannon fodder and suicide bomber candidates.
If you are Palestinian you dare not say anything nice about Israel or Israelis. You had better not stay from the anti-Israel rhetoric. To do so is to be labeled a collaborator or merely "too friendly to the Israelis", both of which can leave you and your family very dead.