Grant Gaza an air and seaport. Build/re-locate the fence on the 67 WB border line in the north and south. I would discontinue most settlements in these areas and have secured roads back to Israel for those that remained. I would declare any remaining settlements here, ones that would be in a future Palestinian state. I would retain the Jordan Valley and the central West Bank until there were peace prospects. I would separate both north and south from the centre (greater Jerusalem - the city without any nearby fences) via security fences across the WB.
Drone crashes near White House, man faces charges (Reuters)
from the article: Peres balks at Olmert's plans for further West Bank pullout