The only way our of the conflict is for the palestinians to accept defeat. You lost, get on with your life with what is left of your land and have your own state so you can finally live in peace. You were screwed up and cheated by a much more powerful nation, supported by much more other powerful nations. It is nice to fight for your rights but it is unwise in a war you cannot win and will lead to only more suffering and the inevitable final result which is Israel fully taking the west bank and Jerusalem. It is like Mexico trying to take California back.
Sad truth is, unless the palestinians accept defeat, they will just live in suffering and misery until they are fully assimilated and their territory taken.
Israel is a major military nation with the full support from the west, they can obliterate Gaza and the west bank anytime they want, they just dont do it because that would paint them, maybe as the bad guys for the whole world for all eternity.
Personally I also think Gaza is a problem that cannot be solved, because it will be part of the Palestinian State but it is separated physically from the West Bank, with Israeli territory in the middle. So the best approach would be to move Gaza's population to the west bank or even better, Israel could concede some of it's territory to the north to the palestinians so they could have an opening to the sea as a compensation for giving Gaza to Israel. The international community could help with the fund to move the population and building the necessary infrastructure. This way the Palestinian State would have an opening to the sea and would have it's territory consolidated.
But it is too complicated and will never happen.