Yeah, this wouldn't work, considering neither the Palestinians, Jordanians, or Egyptians like the idea. I'm assuming you would give the West Bank to Jordan and Gaza to Egypt, right? Or maybe I'm overestimating you and you would you just Milosevic both areas?
Anyway, that neoconservative loser who was too extreme for the Bush Administration, John Bolton, offered up a similar idea in an op-ed recently.