Welcome to the Slings and Arrows Temple Mount Dual-Use Plan. Any Israeli politicians reading this are welcome to introduce this plan in the Knesset. Don't thank me. I'm a given.
1. The Waqf will be kicked out on their little turbaned behinds. Administration of the Temple Mount will be taken over by Israeli government, who will be in charge of all excavations, renovations, etc. (Sorry, Abdul - no more Jewish history down the memory hole!)
2. The Temple Mount will be divided into Jewish and Muslim sectors, and a Big-Ass Wall (TM) built to separate them. Any attacks on Jews by Muslims will result in land from the Muslim sector being annexed, and the BAW extended as far as is necessary to prevent a repetition. Any attacks on Muslims by Jews will be dealt with under the current Israeli judicial system, as it shown itself more than willing to vigorously prosecute observant Jews.
There! That wasn't so hard, was it?
A similar program for every terrorist attack against Israel from Gaza or Samaria should be put in place.
One square km annexed for each israeli death. Arabs can either keep their land for peace, or "no peace, no land".
Pretty soon it would be resolved, one way or the other.