Since the Palestinians want a homeland and it doesn't seem "practical" to chop Israel up even smaller than it already is. So a satisfactory solution is.

LET'S GIVE FRANCE TO THE PALESTINIANS!

The French have already stated that nothing is worth fighting for. Besides, France has better irrigation and soil than the West Bank and Gaza strip. Its the perfect solution. The French won't even fight back.

And how about a new name for this Franco-Palestine? How about FRANKENSTEIN?

Let there be peace on Earth and let it begin with the French.