You've covered the key points nicely.
I agree with your solution with the exception of the wall part.
Remove the cause of the hatred and the need for the wall becomes unnecessary.
Granted, deep rooted hatred takes years to eliminate but with the help from an international coalition of peace-loving countries, maybe there is some ray of hope.
Look what the international community did after 9/11. If only that kind of cooperation could be directed to this current escalation in the Middle East.