Jordan annexes West Bank and Egypt annexes Gaza. Three state solution.
Everyone's happy...except for the King of Jordan and the President of Egypt. 
And the King of Jordan's life expectancy would suddenly be measured in months.
Jordan has a Palestinian majority, so getting rid of the Hashemites in Jordan and changing it to a Palestinian controlled republic would be part of any workable long term solution. Together with the West Bank, this would be a viable state (which the West Bank is not on its own).
