First we know the "all or nothing" Palestinian approach has failed miserably. Now both parties already agree on about 95% of the land, a country should be created there first. Then building should take place in both Gaza and the WB. First public infrastructure i.e. Water, sewers, electricity, roads etc., this would create much needed jobs. Next or along side of this, new Apartments, new houses should be built, Old or damaged houses fixed. The effect would be to improve living conditions for the Palestinian. Resentments would decrease and so would terrorism. This would open the door for more concessions from Israel because the proof would be in the pudding. I believe most people would rather live in peace than a perpetual state of war. But you must start somewhere and the "all or nothing" isn't the place to start. It must be in steps, you can't use the elevator to get out at the top floor in this deal. Using the staircase still gets you to the top floor it's just slower.
Motorcyclist in his 20s dies after crashing near Gedera (Haaretz)
from the article: Abbas: Palestinians will accept only Jerusalem as our capital