Avi K, resettlement is a nice idea, though I think it would have to be done by private parties rather than the government to work in the near future. I like the Jordanian solution, by which all Palestinians in the territories would get Jordanian citizenship and could vote or move there, but could still stay in Israel to work, while all of the Judea/Shomron is annexed. There are many possible ideas, and we just have to wait until one is possible. The two-state solution will never happen (more than it already has — the PA and the Gaza Hamas government are basically state-like, but fortunately are ineffective and have no real legitimacy.)
It is ultimately OK if the status quo lasts for a few more decades, since by then the demography will be so much in our favor (due to charedi birthrates) we could just annex everything all make all Palestinians citizens and we would still have a 70-80% Jewish majority.
Joseph, gun violence certainly results in deaths of Jews as well; I can certainly think of examples even recently. Traffic fatalities are much higher here, and that’s definitely not limited to inner-city people — instead, it’s people with long commutes (like many Jews who live in the suburbs). With all the long commuting and rates of drunk driving America is a very dangerous place. One is probably several times more likely to be killed in America due to traffic fatalities (or die early due to the sedentary American lifestyle and unhealthy diet) than to die by terrorism in Israel. Also, many Jews were killed on 9/11, which would not have happened if they had been in Israel.