Though I agree there needs to be an independent Palestinian state - not sure where since Gaza is nothing but a blasted wasteland - there is actually no route to "lasting peace" in the middle East, anywhere. Humans have but one purpose, to look for reasons to hurt and kill each other.
Give both sides what they want, and sure there'll be a reduction in warlike behavior for a little while. But eventually they'll find some other reason, some other difference, some other strip of land to battle over and it'll be just as ridiculous and genocidal as the current situation or even worse.