Chris,
I like your first solution, although don't agree with the nuclear energy aspect because of the potential danger, and it takes 250k years for nuclear waste to become bio-degradeable. Since there are more enviromentally friendly options, id like to see us go in that direction.

The second option has some merit. The problem with Israel is that within its borders are religous sites that are holy for more then one religion. Same in Iraq, and other countries too. So why not make these specific sites "world holy sites" and have them governed by the UN or some other organization. So then no one country owns them, and everyone can go there to worship.