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Your insights and facts are provocative and profound.
I'd like to think we can find ways to reduce Palestinian terrorism against Israel. For starters, we have removed the suicide scholarships from Iraq, can we seize those from Iran through Syria and Hezbullah? But in the longer run, we must make Palestinians wealthier and better educated, so the suicide option is simply less attractive.
Palestinians, especially those in the diaspora, are as liberal minded as any other Arab national grouping. What they and Israel need is a prosperous Palestine surrounding and effectively protecting the Jewish state.
This modest proposal assumes enough land to bring home much of the diaspora. We can double the size of Palestine by demanding that surrounding Arab states allow their Palestinian brothers dual citizenship and full rights to land ownership in a set of buffer zones with significant ties to the traditionalists who see it as once part of a Greater Israel.