The problem with YS's ideas are that they have been tried, and didn't work. The right's methods haven't worked either. The problem is that within the Arab world, there is no clear leadership. You can make peace with The PLO, but Hamas will still be at war with you, and so this pattern repeats itself all over the ME. Because there is no defined leadership representative of the population of the Arab world, there is no single authority. The Arab world is incredibly weak in that it has never been given a mandate from its populations. There isn't anyone to do business with strong enough to enforce a policy of peace. Build a wall, leave them alone, and hope that they take their medication and calm down. That's Israel's only option, really.
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Palestinian reports: One seriously injured by rubber bullet during clashes near Ramallah (Haaretz)