Remember the peaceful and prosperous period of time a few years ago? There were few acts of violence, Palestinians cooperated with the Israelis, and Palestinians prospered. Palestinians should strive to re-enact this period.
The Palestinian solution is simply to stop the terrorist acts. They are better off bargaining without them. Such acts only increase the Israeli hostility and hatred towards the Palestinians. The are many non-violent forms of opposing the occupation that are more effective (refer to Mohandas Gandhi and the Indian Opposition.)
So Palestinians should not sanction terrorists and other activists, and those who are should quit.