Well, far smarter people than me tried. However I'll have a go. Palestinians were sitting and shitting on a piece of sand for a couple of thousands of years and not doing anything with it. Jews started returning to the same patch of sand at the beginning of the last century and more came after the European holocaust. They established the state of Israel and proceeded to get busy. Turning the desert that the occupants at the time were doing nothing much with into productive farm land.
View attachment 265280
They offered the Arabs full citizenship and a piece of the pie. An offer which was soundly rejected with a counter offer of all their neighbors attacking them in a full scale war with the stated intention of annihilating them.
Now to cut to the chase. If the patch of sand they were living on is the main bone of contention, why not move to another patch of sand. The middle east has lots of room with Arab neighbors. Why not donate an area where they could move and prosper? Fighting over the one they've got doesn't seem to be working.