IMO, there are two solutions, one which is Palestinians living in their own State and Israeli's returning back to where they came from[which is being spread all over the world WITHOUT having a country]. 2nd which is having peace between the two countries and allowing all the refugees in Arab world to return back to their homeland. Both options aren't likely to happen soon, but they're the only options that I can see.
Edit: And they will have to choose the 2nd option.
Plus, If I were Israeli, I would really leave the place and find myself a better shelter/home where I can live a better and safer life. It has always been up to Israeli's, they can decide whether to live a better life or bitter one like the one they're currently living.
You forget that Israel is now their home. 60 years have passed. 90% of them were born and raised in Israel. It's their home just like it's the home of the Palestinians. Hey, i'd say that it's their home more than it's the home of someone who is Palestinian but was born and raised in Lebanon or Jordan.
There might be much more peaceful and better places, but not for them because nothing's better than home. No matter how ugly and dangerous it is, it's their home and they don't want to leave from home.
