The other solution is to re-create apartheid South Africa's Bantustans, little enclaves of land with often undesirable characteristics into which you crowd all the people that you don't want and declare that these are their new countries. We see this already in Israel, notably in Gaza, which really is a giant refugee camp much resembling a concentration camp with high fences and automated machine-gun towers surrounding it, the residents being permitted almost no freedom of movement or even economic activity, as for example Gaza's fishermen being fired on by Israeli gunboats if they stray even slightly beyond tight boundaries in the sea.
The world would not long tolerate that approach no matter how much influence the United States might unfairly exert. After all, for a long time, the United States protected and cooperated with apartheid South Africa, always regarding it as an important bulwark against communism, anti-communism being the fervent secular religion of the day in America. This was so much the case that it even overlooked what it absolutely had to know about, apartheid South Africa's acquisition of a small arsenal of nuclear weapons with the assistance of Israel, Israel always being keen to keep good access to South Africa's mineral wealth.
Clearly, those two options are not solutions. Realities absolutely demand either a legitimate two-state solution -- which Israel's leaders have never truly accepted while giving it time-buying lip-service -- or a one-state solution which is probably even more unacceptable to Israel's leaders and much of its population, guaranteeing, as it does, the eventual minority status of Jews.
Israel has itself created a terrible problem which it is incapable of solving. That is why it has always been the case that the United States must pretty much dictate a solution, but it is unable to do so, paralyzed as it is by the heavy influence of Israel and America's own apologists and lobbyists.
So, in effect, the world just goes around and around on this terrible problem, never doing anything decisive. The macabre dance of Israel and the United States we've had for decades yields today's de facto reality of Israel as nothing more but nothing less than a protected American colony in the Middle East, one in which all kinds of international norms and laws are completely suspended, one where millions live with nor rights and no citizenship. But, after all, colonies have never been places where the rule of law and human rights prevail, have they? Never.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
