Actually the idea of him "disappearing" might be the best option.
You are right that his death would make him a martyr, and his
trial/conviction would only serve to have more hostages taken for his
release. The only choice with respect to a trial would be either in the
world court (where there was a successful conviction of one of the Libyans
accused of the Lockerby bombing), or in Israel, where negotiation (in
theory) is unheard of and all those (even the relatives of the hostages
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