I like the five state solution:
State 1: The coast (Tel Aviv, Haifa, excluding Benei Brak). Teveria to Beit Sha’an.
State 2: The Charaidi state: Benei Brak, Yerushalaim up to route 60, Ramat Bait Shemesh Corridor.
State 3: Negev: Dimona, Eliat, Be’er Sheva, dead sea up to Ein Gedi, and the Desert up to Ma’ale Adumim.
State 4: Gaza
State 5: East Jerusalem (east of Route 1), Bethehem, Ramalla Corridor, up to Nazereth.
The old city gets internationalized, with Har HaBais under Swiss protection (the “Clancy” plan) and Saudi political control.
It gives everyone what they want. The Arabs get a “real state” with a real border. The Israelis get peace, rid of the Charaidim, and beaches. The settlers get the Negev. The Charadim get to apply strict Halacha wherever they go, and no one to tell them that they can’t do so.
Of course, there are some minor issues, but nothing that can’t be worked out between the various parties.
🙂