brainstorm: solve the palestinian israeli conflict

[it]

in a long going discussion full of rubish semantics, wedge issues and blame games, you don't see a lot of practical thinking.

so what I am looking for is a practical solution for the conflict, that:

1) grants soverignty and freedom to the palestinians within a palestinian country.

2) allows israel to maintain boarder security and autonomy.

3) the starting conditions have to be based on current reality:

1. the palestinians are ruled by hamas.
2. no palestinian elections since 2006, skeptical possibility regarding 2012.
3. the palestinian economy is 1/3rd foreign aid dependent by the most optimistic analysis.
4. the israeli political atmosphere has lost nearly all faith in the prospect of peace in the near future.
5. the previously leading pro-peace party has changed its leadership and is now focused on internal matters (usually taking a socialist stance).
6. the nationalistic parties currently compromise the ruling coalition in israeli parlament.

and... go. solve the problem.