The Jews shouldn't just be there.
The Muslims shouldn't just be there.
The Christians shouldn't just be there.
Put in a secular state where everyone can live together. Move the dome of the rock to Mecca so that it can be worshiped properly (It's just a rock for Christ's sake

) and build a Third Temple that outshines the Basilica of St. Peter that everyone can visit as a nondenominational religious site. If the Palestinians want to look like the good guys just let them build a church and stop fighting them. Israel will either stop fighting back or the west will make them stop acting out. The Dome of the Rock is barely important to Islam, they've already got the Box of the Rock in Mecca. The idea of the Temple is all the Jews have.