I've come to believe the problem is intractable. Too many years, too many problems, too many people from all sides trying to stop any kind of peace. I'm not picking sides. I'm on both. And neither. When my son asked me years ago which side I was on, I answered him that by this time there were no angels on either side.
For an intractable problem you need an impossible solution. A miracle, if that's in your belief system. I'll settle for calling it a science-fiction fantasy. Impossible. Impractical. But what if...?
Start with a dome. Think of it kind of like the one on TV, inpenetrable from either side, physically, visually, electronically. Sunlight can penetrate for growing, air can exchange to stay fresh but no toxins can cross. Have it cover both areas as one. Remove all the weapons. ALL the weapons. Provide enough food and water for everybody. Anybody who tries to harm another dies. Period. Dead. Add whatever rules in how the dome works that are necessary to keep the rest inside alive, and keep the rest of the world out completely.
Then make everybody infertile for a couple years, just enough that everybody gets the idea. No more babies. Follow that with making the only coupling that ends in reproduction to be that between the two sides. A Jew is only fertile with a Palestinian. All new children are cross-breeds. Wait a couple generations to drop the dome, maybe three. Maybe, just maybe, then there would be a chance for peace.
Until, of curse, the rest of the world steps in and tells them there should be hatred and fighting because....