I think that once they regain control of Gaza, the Israeli's should "deport" all Hamas/Fatah fighters to the West Bank and offer the innocent Palestinians citizenship (after proper screening) to Israel. That would send a clear signal across the Palestinian's bow that they are living on Israeli land, and they have the right to take it back if the Palestinian state does no police themselves properly.
Except that:
1-They are not living on Israeli land, a position that no country in the world disputes, including Israel and the US (In fact, Israel tried to give Gaza back to Egypt in the 80s)
2-Most Palestineans, including the ones not involved in terrorism, don't want Israeli citizenship.
That's why I said offer, not grant, citizenship. I'm sure there are many Palestinians today have remained for the same reason their ancestors did . . . to earn a living. For the longest time, the area which is now Israel contained many swamps and unusuable land. The Jews were able to convert these areas into useful land, which created a lot of jobs in the area. Palestinians remained behind and took up jobs in Israel since the neighboring lands were not doing so well. Offering their decendents the chance of being legal citizens (after proper screening) might go a long way to remove the suffering of innocent Palestinians caught in the war. It will also make it easier in identifying the Palestinians who are bent on destablizing the region.