A Middle East Solution
Tell me if this is hideously simplistic, but it strikes me that a forward-thinking (and ethically sound) US leadership should be able to "solve" much of the Middle East's issues using a straight budget re-allocation. Take the nearly half a trillion Dollars that the Iraq war has cost and plug it into finding a viable alternative to the US's reliance on oil, shore up Saudi Arabia's democracy to reduce risk of anarchy there, and encourage economic shifts in those oil-producing countries through FDI. It'll take ten years, but given that the US has been in Iraq coming on half of that, is it so out of touch?

Granted, it's certainly not going to sort out the Palestinian question, but it may force a much more open Middle East that has to look to alternative trade with the West, which can only help in finding solutions and encourage less radical leadership.

Too simplistic?