Israel policy

The idea that none of the terroist groups in Palestine wish to see an 
end to Israel is laughable.  Many of them have this as their ultimate, 
if not immedeate goal.  Even if this is not true, the almost year long 
Al-Asqua Intifada, constant anti-Israel and anti-Jewish rhetoric and 
propoganda, and apparent loss of an entire generation of children to 
this propoganda does not make many want to trust organization that say 
they do not want to destroy the state of Isreal.(just as it makes it 
hard for many Palestinians to believe that Israel is not out to destroy 
them)  Thus is the problem.  What can Israel feasibly do in order to 
both protect the safety of its citizens in the short term, its 
existence and the long term, and the rights of the palestinians that 
live there?   Furhter, if they gave in to every demand, even right of 
return, do you think that that would bring lasting peace to the region? 
(exluding the peace taht i am sure would exist if israel were wiped 
out) Would doing so be right? (i.e. are all Palestinian claims 
reasonable and accurate, whereas none of Israel's are?)