The notion that Israelis and Palestinians can live side by side in the same territory is a fantasy. Perhaps someday they can, but the best solution is for Israel to give up this settlement nonsense, pull back behind a defensible version of the Green Line, and let the Pallies devour each other.
Which, after a fashion, they will. They hate each other more than they hate the Jew.
That, I suspect, is the conclusion the U.S. Government came to some time ago. You just can't expect George Bush or Condi Rice to say that kind of thing publicly. Everyone knows that the entire region is run by crooks and scam artists. However, expecting the Israelis to come to a similar conclusion is like expecting Ehud Olmert to actully win a war.
Be Seeing You,
Chris