Interesting outside the box thinking and realistic concerns.
Problems that I see though, are this:
At the time they held an election (which was a mistake and an indicator of the same hubris displayed in Afghanistan and Iraq that that all you needed for democracy was the vote). the majority of Palestinians, including Gaza, supported a 2-state solution and recognition of Israel, at least according to a poll I read. What happened? Doesn't that weaken the broadly applied narrative of Palestinians always being so bloodthirsty?
Israel must have security, the same as any nation, but it appears to be imo, willing to risk that in favor of long term policies aimed at consolidating it's hold on the Occuppied Territories and reducing any probability of Palestinian autonomy while expecting the unqualified support of it's allies.
West Bank has long been regarded as more moderate and secular, but this might be changing. Netanayahu's open repuduation now, of 2 states (a repudation that is not new, just out in the open) leaves the Palestinians with what sort of future? Is the status quo of an occupation, with it's very unequal system of justice etc. sustainable?
Unless there is some movent towards Palestinian rights, there will be more violence. You can't keep kicking the can down the road.