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Originally Posted by LobsterX
And what would that strategy be Eric? Give in to all the demands of the terrorists HOPING that the terrorists would not wipe Israel out of the face of the earth? Im all ears here Eric...(or should I say all eyes...) 
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Absolutely not. You do what needs to be done to DECREASE the popularity and influence of the terrorists.
The Palestineans want their own country. If Israel wants there to be peace, then they have to demonstrate to the Palestineans that cooperation and peace will bring the Palestineans their own country.
For the past 2 years, there has been peace in the West Bank. Hamas leaders and anyone else that tries to attack Israel has been imprisoned by the Fatah government, and they have done just about everything that Israel has asked. Yet the people in the West Bank are no better off than the people in Gaza, and many Palestineans are starting to grow tired of Fatah's peaceful approach since they do not see it helping any. Fatah will not last much longer in power in the West Bank if they do not produce some visable results for the Palestineans. If they lose power, then Hamas will also control the West Bank.
Israel needs to move forward with a peace plan to grant a Palestinean country in the West Bank. If they do that, then they increase Fatah's popularity and will clearly demonstrate to the Palestineans that the peaceful approach will help them achieve their goals. You will see Hamas' approval ratings go down the toilet, and they will quickly lose power as the people in Gaza turn to Fatah to help them as well.
That is what Israel needs to do. They need to reward those who have been peaceful. You need a "carrot on a stick" approach here.