One state solution. Israel gets all of their holdings from the Yom Kippur War back. They get full control of the Temple Mount with religious freedom for all. Palestinians offered Israeli citizenship or move to any of the Islamic countries nearby. All Arab countries must recgonize Israel and get their terrorist elements under control or it won't be pretty. Hamas, Hezbuallah, Muslim Brotherhood, ect must lay their as down and be put on trial for their crimes and eternally disbanded.
This is a secular and democratic government in my scenario.
The destruction of the state of Israel and its replacement by a secular, socialist, and democratic Palestine, with equal rights for all and special privileges to none.
So you basically hand power back to radical Muslims?