Maniac: I believe that an earlier post of mine reflected similar views to yours. An armed conflict is unwinnable. Unfortunately, I believe it will take decades for the two sides to find common ground and form an agreement. Reason being the perception of each side of the other. Only through education can things change, and unfortunately that takes a loooong time. In Ireland it took more than a century, South Africa has oppressed its native population since the arrival of the Europeans, and so on.
Regarding the solution itself, I can't see it coming soon since the Palestinian ethos requires granting a general right of return to all refugees from '48, meaning the virtual annihilation of Israel as it is today, something our gov't cannot possibly agree to. The Palestinian public will accept nothing less. This has been their demand from day 1 of the talks, and it isn't likely to change. Again, I believe that an understanding of the infeasibility of such a demand is a slow process, since it requires a shift in the perception of an entire nation.
All this refers to the PA. Hamas's stated goal is a Palestinian state on all parts of pre-48 Palestine. They are unwilling to recognize us or have any dialog. This can and will change, but it will take a long time and must be built from the ground up.