Neither side is going to back down. To continue your absurd WWII analogy, do you think Germany would have backed down if the Allies had simply stopped at the borders, then proceeded to slowly steal territory and wealth? Of course not. They would have become more extreme, leading to even worse outcomes. These conflicts require drastic action, towards a peaceful solution or towards annihilation of the enemy.
They can't put Palestinians on a truck and send them to Jordan or Egypt. Because Jordan and Egypt have no interest in absorbing a bunch of poor Palestinians.
Also interesting is that you claim this conflict is as old as civilization itself, than figure it will be over within the next hundred years, because Israelites will be Israelites.
Is it possible for you to make an actual, legitimate point, without doing something retarded like slandering a nationality I don't give a shit about?