Carpet bomb Gaza with cluster munitions from one end to the other. When the Palestinians come up to survey the damage, bomb them again. Repeat until the scum are no longer a problem, then bulldoze Gaza, and build on the rubble.
I like your solution...
I vote non-lethal mustard gas......gas the strip everytime the wind blows out to sea. Increase strength of cough/burn agents every week. Once they get tired of coughing and choking, they can flee to the real Palestine: JORDAN.
...or Egypt.