This is just sad tht a US. government representative would say or want to do this.
How would there even be peace then? There is no land to give them and nobody wants to share any or give any up. The politics of the Middle East does not set it up in any way for there to be peace. Do we thank American Christians for this or over zealous Jews? The US had more to do with this than most of us will admit.
Even if all the Jews and Muslims converted, then you would just have wars between Christian sects, much like the Catholics and Protestants did. At the moment Christian sects are temporarily united against non-Christian faiths, but shoudl thee not be other faiths, it is very likely they will go back to wars and fighting among themselves.