Mid-East Problem-Same Ol' Solutions?

The Arabs have been resisting the Jewish take-over of Palestine since 1929 and the resistance just seems to build over time. Solutions, such as they are, are not working. Who is to blame? The U.S., Europeans, and the U.N. is my guess. Since Israel is the creation of the U.N. , with strong U.S. backing I'd say it is about time that they solve the problem. Israel and the Arabs are too far entrenched in their positions to work out anything so it must be imposed on them. Israel would be easier to deal with, since much of their income is from the U.S., loans or gifts to the tune of 2 billion dollars or more. Sanctions on the Arabs is trickier, since they got the West by the gonads, by threat of oil embargoes.
Two main stumbling blocks exist--Israeli settlements and control over the West Bank, and Israel's right to exist, which so far has not been guaranteed to Israel by the Arabs. Oh, yeah they have mumbled it under their breaths, all the while shipping rockets to Hezbollah behind everyone's backs. What a crazy world!
Where else in the world is it "normal" for rockets to be launched at a State by militant political organizations from a State that has diplomatic relations with the State being fired on? Then consider that the political organization is being provided sophisticated rockets without being held accountable by the international community, who mouths "cease fire" and "diplomatic solutions"; and these diplomats are the best we got?