The only solution at this stage is the one-state solution, for Israel to become a multi-ethnic, democratic nation with equal rights for all.
One other note: I don't think it's fair to characterize the Israeli belief in their supremacy over the Palestinian people as a fringe one, but one that is baked in.
Well, you are basically saying Israel will go away and Palestinians and Jews will unite. Noble goal but add a few hundred years to the timeline for this one.