The two state solution has to be the answer. Both Jews and Arabs have the right to live there in peace. If you took religion out of this we'd be a damn site nearer to a workable peaceable future.
Unfortunately Israel is vehemently against a two state solution and I think this current spate of violence is based on Palestine applying (and succeeding) to become a non member observer state based on 1967 boundaries.
That of course will leave half a milllion Israelis that (generally) stole Palestinian land* on the wrong side of the boundary in Palestine not Israel, like they had been promised by the Israeli government wnhen it helped them move there...
*Some of it was legitimately bought, much of it was taken by the Israeli army and given out to settlers, backed by the Israeli government to give the government more leverage in taking over the rest of Palestine...