I agree with generally what you're saying, but I have some other/additional thoughts as well...
1) Education is DEFINITELY needed. But it will take long to implement and even longer to see results. So in that sense a short term solution is needed as a supplement.
2) Speech needs to be better...
FWIW, I feel that Israel SHOULD annex the most of the settlements, BUT in return the future Palestinian state would get an equal amount of land in exchange (eg Nazareth and some of the surrounding land)