No. of Recommendations: 3
So, the only option is to wipe out all the Palestinians? I very much doubt they would accept "reservations" as the US model did.
No, the option would be to continue the status quo. No one's going to "wipe out" the Palestinians. They will continue to live in Gaza and the West Bank (and in Jordan and Syria and elsewhere). But they won't have national sovereignty in those areas - just local governance, at most. For a rough analogy, consider U.S territories - though probably not exactly that. Not reservations, though, since reservations have actual sovereignty.