Israel should create a new punishment for Islamic terrorism in Israel. Every time Islamists do acts of terror in Israel, then all Muslims should be barred from the Temple Mount and Al Aqsa Mosque and the Dome of the Rock for two weeks: no exceptions.
Israel should make the consequences for terrorism so distasteful, that incentive for such infidel practice would be severely hampered. When Islamists then argue, that Israel is changing the status-quo at the Temple Mount, Israel should then simply inform Islamists, that it was their own acts of terror that changed the status-quo for two weeks.
If Islamists cannot restrain their own people from doing acts of terror, then they have brought whatever consequences upon themselves. Israel would not be responsible, but the Islamists would be responsible. No Islamic terrorist should be allowed to use the laws as a shield behind which to hide.
If the Islamist response was agitating for a state of war, then so be it. Sometimes war is the only way for hard-headed people to come to their senses. Sometimes it takes war, for real peace to have a chance. Anyone too weak to stomach the possibility of war, is also too weak to arrive at the blessings of genuine peace.