What are you suggesting should actually be done now? I think the Oslo Take Two model you seem to be suggesting- land for peace without any real change in Palestinian political culture- belongs just as much to the realms of electoral fairyland as my "Walt Disney's Holy Kingdom" model. I suggest we call it the "Euro Disney" model.
An important lesson everyone should learn in life is that not all problems can be solved. Some problems must be endured. If a problem cannot be solved by this generation, it is the right and proper thing to quarantine it for future generations- with their higher IQs, better mobile coverage, and massive real-time socio-political simulatrons- to solve.
I wasn't suggesting that the Euro Disney model should be followed, I was saying that it was the path of least (political) resistance net of both sides, and that the fence and other Israeli initiatives seem to lend themselves to that model more closely than either a one state 60-40 solution, or a solution which neighbouring Arab countries take control (Tell me, why would they - they lose all the political leverage of the situation if they did). Also Israel still seems just as concerned with the control of the borders of gaza etc. with the neighbouring countries as with general infiltration from the disputed areas. In general, I agree that this problem will have to be endured, and the thought that incremental increases in security as Israel is trying will mean less attacks on Israels interests is also a concept from fairyland. The security initiatives will only change where and when the subsequent attacks happen, not the quantity of deaths. As I said in my reply to Dave, however, geopolitical forces will have an impact on the quantity there.