I think it's been pretty obvious for decades already that something like solution 3 is what will eventually happen. First two solutions would require compromise

I think it's been pretty obvious for decades already that something like solution 3 is what will eventually happen. First two solutions would require compromise and sanity from both sides, which they are clearly not capable of. If roles were reversed, Palestinians would treat Israelis just as bad as Israelis are treating them now. It's a sad conflict that can't be solved without some kind of superior external force, that would use extreme economic and military measures to make two sides tolerate each other. America is closest to that force, and they've chosen their side. Best Palestinians can hope for is a peaceful relocation somewhere else I'm afraid.