akuperma: Have a little emunah. Nothing will happen to us. You’re probably more in danger than we are, as many Kabbalists have said.
Bottom line is you can’t make peace with an unwilling party. It isn’t even an issue of territory, as evidenced by the Arabs rejecting every offer they were given, even when it is almost everything they wanted.
This is all about their religious theology, which believes that there has to be a cataclysmic battle for their last Imam to come. There is nothing we can offer, short of committing mass suicide, that would please them.
There are not always a solution for everything. We just need to have faith in Hashem and know that He has a plan and everything will be ok.
For our part, we also have to have some self respect and not allow our enemies to dictate things to us. It shows weakness and they exploit it and make more demands in return for nothing.