I think permenent residency, $1,000 fine, and some combination of community service/college/military service.

I think if you throw in the community service option you will shut up some of the people who talk about the latino draft / and or who think the "college" part isn't helping the U.S., So maybe staggered - 5 thousand hours community service and a vocational school /3 thousand and an A.A. /1 thousand and a B.A. --- something along those lines. I think you could also tie college / vocational training to high demand careers or something.

But, since it doesn't effect me I think my opinion doesn't really matter on this.