Your solutions sounds fine, but who is going to impose them? The Palestinians don't want it; they want their own state. Jordanians don't want the West Bank or a part of it because it would upset their even now precarious population balance and the Egyptians would be crazy to take Gaza under their protection. Israel certainly cannot force any of the parties into such a deal. This leaves the two state solution as the only viable option, and this means dismantling of many settlements. It will hurt, it will cause upheavals and maybe, unfortunately, even murder of some politicians, but it will not end up in a civil war. Israelis are too smart to know that that would be the end of the state. The right wing always dismisses the leftists as dreamers (if they are not called traitors or self haters) but in fact this Jordan - Egypt solution is no more than a wishful thinking. It also betrays an amount of megalomania, as if Israel were the only actor in the area.
Report: Palestinian, 18, killed in clashes with IDF in West Bank (Haaretz)
from the article: Deja vu