Not sure what the smiling face is for, other than to express a degree of amusement or positive feeling about a situation in which many people are dying and being forcibly displaced. I don't know if you have any personal connections to this region and conflict, but I do, and the situation you're posting smiley faces about is one in which I have lost loved ones and have other friends and colleagues at risk, so smiley faces do come across as rather inappropriate.
Both Israelis and Palestinians can make valid claims to land in the area. Generally speaking, the forcible and permanent displacement of a population from the land on which they've lived for generations, particularly when it's for the benefit of another group, is considered ethnic cleansing and is unacceptable (illegal, actually) under international law. So, there either needs to be a process through which both Israel and Palestine can exist next to each other, or the international community approves the commission of something which falls under the category of crimes against humanity, meaning that international law becomes meaningless, the precedent is set for this to be condoned as a solution elsewhere in the world, and a population which has already suffered greatly suffers further, with no real hope of healing from something like that.
The Gaza Strip, the West Bank and East Jerusalem were designated as Palestinian territory. However, in all of those areas, people living there have suffered occupation and oppression. Israeli settlements were removed from Gaza before, so there is precedent for the removal of settlements as part of peace processes. Some settlements in the occupied West Bank are now sufficiently established that it would likely be more feasible to negotiate exchanges of equivalent land areas (in both size and land quality), but overall it would be possible to negotiate a solution which ends occupation and puts a stop to the annexation processes that are seen to be underway.
Both the Israeli government and the Palestinian leaderships involve people who have demonstrated their own commitment to preventing a two-state solution. There are voices for peace and finding a way to co-exist rather than continuing this cycle of conflict, and the international community could support those voices to be heard, while working to bring to justice people who have committed crimes and atrocities. A peace process to reach two states living next to each other would have to involve difficult compromises, but this has not been an insurmountable obstacle in other peace processes.
My own opinion is that the leadership of Hamas should never again be in a position of control or authority over the fate of Palestinians or Palestine's neighbours, because they have resoundingly demonstrated that they cannot be trusted to do so without causing immense suffering to both Palestinians and Israelis. If I were negotiating, I'd be looking for an agreement that ensured the surviving Hamas leadership were not involved in the government of a Palestinian state. It would likely be possible to negotiate to achieve that and to have a demilitarised Palestine with no armed forces of its own for a period of time, to allow time for people to undertake work to address issues of trauma and radicalisation and to reduce risks from people and groups with extreme and pro-violence attitudes.
Another issue is border security; Hamas and affiliated groups carried out one of the worst terrorist attacks of the century and that involved breaching border security measures, and the Israeli government and 'settlers' have demonstrated that they cannot be trusted to respect the territory and human rights of others in this situation, so safeguards would be needed in relation to that. International peacekeeping forces and/or a relatively independent coalition of countries committed to maintaining peace could be deployed to establish and maintain border integrity and security.
People won't stop hurting overnight, they won't stop being afraid overnight, they won't stop being angry overnight, but in time people can find a way to tolerate co-existence.
The options in front of people are: to actually commit to making a two-state solution work; to incorporate all the land into one country with equal rights for all (but this country would likely no longer be the Israel or the Palestine people want and need); or to forcibly displace one population from their homeland (which is illegal under international law, sets a precedent for it to happen elsewhere, likely results in the deaths and traumatisation of thousands if not millions of innocent people, and makes the rest of the world - including all of us - complicit in that awful act). When the least bad option is finding a way to co-exist, that's what people should try to do.