What I suggested to Loinboy on the other thread.
The Palestinians committe to stop the terror against Jews and Israelis worldwide, disarm Hamas, Fatah, and other organizations committed to killing Jews, stop the war crimes against southerners and recognize the Jewish connection to the land and accept Israel's right to exist in security.
Israel leaves the military presenting in Judea and Samaria, lift the blockade and remove checkpoints and blocks, and any other things that hurt the palestinian freedom of movement. The settlements will be part of the Palestinian state, if they wish it not, the settlers will be moved from the west bank, the Arabs will be in the Palestinian state, which will be made of the West bank and Gaza.
Golan will be left in the hands of Israel. Jerusalem free for all people of all ethnics to live in. Both Muslims and Jews will have access to the Temple mount, and freedom of praying there.
That's the perfect solution.