There's no good reason why the Palestinians should not have a legitimate state of their own on the West Bank in what's left of their land. Jews got a state from the UN in 1948, at Palestinian expense, largely to make recompense for what the Germans did. Let the Palestinians have their own state. In fact, Israel and the US should jump onto the Palestinian statehood bandwagon. And while the UN is at it, they should invoke a policy somewhat akin to the Doctrine of Eminent Domain and pay Just Compensation to those, Jews included, who lost property when the UN, as representative of the world community including Israel's adversaries, gave Jews a state in '48. The settlers? Leave them where they are if they don't want to leave. They'll need to pay for their land of course. There's no free land, and they'll become Palestinians. Jewish Palestinians who will enjoy all of the rights and privileges normally accorded to all citizens of the State of Palestine. Israel has Arabs. Palestine can have Jews.
Woman moderately wounded by firebomb thrown at her car in north J'lem (Haaretz)