We need a two-pronged approach to immigration reform. One that the neo-cons will love one side of and most will hate the other.
The side neo-cons will love:
Secure the borders. For real. Further, increase penalties for those that immigrate illegally and actually enforce those penalties.
Here's the side neo-cons will hate:
Pair this with a relaxation of restrictions on legal immigration. Allow in basically anyone without a criminal past beyond traffic violations or similar low-level misdemeanors on a five year probationary visa.
While you're on this probationary visa if you commit any crime beyond a Class C Misdemeanor your visa is revoked and you are deported. No review, no exemption, it's automatic.
Once you reach the end of this five year period you receive Lawful Permanent Resident status and, just like now, you can then after five years apply for naturalization.
Basically what this would do is reduce the incentive to try and enter the country illegally, because legal entry would be relatively easy and the penalties for illegal entry much more harsh. Just my opinion.