Have netenyahu and arafat arm wrestle.
or
Pipe the record "Beans and Cornbread" by Louis Jordan throughout the holy land. Everone wil do the hand jive, feel good, and jews and arabs alike will come to realize that they "go together like red beans and rice, and hot cakes and molasses" and stop fighting.
or
Take a Palestine-sized piece of Germany. Evict all of the Germans. Give this newly vacated piece of land to the Palestinian Arabs and call it "New Palestine" and let the Jews keep Israel. The only loser would be the Germans, who owe the Jews big time because of the Holocaust and cant complain.