Unfortunately, the removal of a side, which would be injustice for the both sides, won't be any helpful at all. Because, even though the direct enemy of Palestine is Israel, they are under the oppression of the middle east actors too. Because Egypt, Jordan, Saudi Arabia, Syria and even Lebanon and Hashemites living in the region have all their interests, histories and eyes on the Palestinian region. Palestine is like the youngest child that gets bullied by everyone, imo. That's the another main reason for that no one protects or supports them meaningfully.(The other main reason is obviously the US that is fully supporting Israel)
So lets say the Palestinians are pulled away from the region with a magical hand, you would have immediately other nations and Arabic clans fighting over the region, both against each others and Israel. I believe that would be even more troublesome for Israel.
Removal of Israeli people is an equally bad idea, since they also have a history and the rights to exist there, even alone for the reasons that it's much more unrealistic and unpractical. They are supported by the western world to the utmost for a reason. For number of reasons actually. And all the reasons can be summarized into the fact that the non existence of the Israel state in the middle east would obviously against the all kind of Western interests in every way.