It's a bit hard for me to say yes or no as both sides have committed some fucked up shit, but I guess you could say I support Palestine, as a secular state that (tries to anyway) not have the agenda of purging an ethnic group they don't like
On an individual level a Palestinian and an Israeli are not monstrous child-eating beasts, but the Israeli government and groups like Hamas on a group level have committed horrible acts against innocents and fail to conduct in respectful warfare. (though really, what war is respectable?)
I believe that such a state should be a mandate of a foreign power until stability is restored in the region, I'd suggest the British return to Palestine but given the current state of Britain I feel like they would muck everything up even more. (and I don't think the publicity would be all that great)
Maybe the U.S should take this mantle, although it wouldn't be any better then the British, but if we use some subtle wording and not directly state that this is the U.S conducting the show, people wouldn't be as mad. Though we'd still get a lot of flack since Palestine would AGAIN be under foreign control but it's not like the locals are doing a better job.
Maybe it should be a U.N mandate? Just kidding that would be a dumpster fire as soon as it's planned.
I do think that eventually the local population should take a vote on if to continue the mandate or declare independence, eventually foreign powers would have to withdraw so this vote would extend the mandate until the next vote 10-20 years (if continuing the mandate is a majority opinion) or independence by then.
"What about the terrorist groups! Won't they be impowered by this and now have a just cause to resist the mandate?"
Yes it could allow terror groups to take up the "just" cause of resisting the mandate but through careful wording, benefits for cooperation, a healthy dose of propaganda showing how good the mandate is for the region, not making military personnel a common sight/not making it look like an occupation, and disarming said groups via dismantling the very prevalent illegal arms trade, firearm buyback programs and a crackdown on drug trade to destroy terror group funding, resistance can be reduced to tolerable levels. There will always be outliers and people who disagree with our rule, but we shouldn't push for a goal of 100% acceptance (it'd be neat though) but push for a goal of non-violent disagreement and majority accepted rule (60% minimum) through, again, proving to the people our administration is what the region needs among other methods.
"Won't other Arab countries see this as a prelude to a return of colonial occupation and try to dismantle the mandate?"
Probably yes, but we should be clear that this won't ever extend beyond Palestine, as a gesture of goodwill and proof we're working towards a better middle east we should form a council of representatives from neighboring Arab nations and Muslim leaders that can comment on and help guide disputes with the Arab population and our administration, alongside returning The Golan Heights to Syria and helping nations like Egypt and Syria fight ISIS.
On the Jewish question, insure Israeli Jews that they will be protected as much as any other civilian of the mandate and creating another council of Jewish representatives to handle disputes concerning Jews.
Christians, the often forgotten group of people in Palestine, also deserve their own council, consisting of The Pope, The Patriarch of Jerusalem and other local Christian leaders, an effort must also be made to restore destroyed Christian sites in Palestine.
These councils will allow us to display unity and cooperation amongst the different religious and ethnic groups in the region, they may not solve everything but they will help immensely when dealing with religious disputes.
The administration must be made of outsiders and locals, outsiders will hold all key positions and local leaders will advise them with local issues, the reason outsiders hold key positions is to insure (hopefully) nobody who has power will have a bias towards one group or the other and can assess situations fairly and objectively, eventually once the locals don't want to kill each other all the time then locals will be able to take power.
Reconstruction programs and construction of new settlements, towns, monuments, and factories will create jobs, boost moral, increase cooperation and pride in the new Palestine.
I'd type more but I'm tired and out of ideas
I could be completely wrong and this could be a shit take but this is just how I think this whole thing can be fixed, while yea this isn't a perfect solution and it's easier said then done but at least it's a step in the (hopefully) right direction.
Sorry if I made some typos or said something that made no sense, I'm mostly just talking out my ass here, realistically none of this will happen but it's still something I wanted to say. Feel free to correct me if I got some things wrong :)