Buy them an Island
Wouldn’t work. They’d be at war with the marine life off their coast instead of establishing a fishing and hospitality industry . They’d blame the resulting economic conditions on Israel and the United States and the terrorism would continue due to the support from the same people who finance them now, which sadly includes us. They’d never accept an Island and Gaza is proof that they can not govern themselves and are unable to live anywhere in peace. They continue to support terror and elect terrorists to represent them. When the Palestinians stop indoctrinating their children to hate and kill I might take my earplugs off. Until then, I discount their pathetic ramblings as unworthy of my time or sympathy.
Their status in life is directly attributable to Arab leadership. Until they realise and accept that fact they don’t have much to look forward to except more violence and more isolation. There can never be peace when only one side wishes it.
Wouldn't work 100%, but better than building a wall to keep them out. If necessary, set up a blockade and search everything going in and out for a few generations until they cool off.
They'd never accept an island
They wouldn't have a choice. After a few generations it will become the apple of their eye. Would they ever be completely content? No, they have intense animalistic hatred that is taught to them from the time they first learn to speak. But, they can sit there and stare across the ocean with all the hatred they can muster and hope somebody on the other side feels it.
After 200 years on the island the foolish talk about some land somewhere where their great-great-great-great-grandparents owned some land will become like a fable to the young and it will fade away.
Plus, it is the ONLY thing that is going to work. I have been saying and posting this for years. You can't negotiate with the kind of rabid animal that would strap explosives on a 15 year old girl and send her off to die... just to make some kind of point.