In my opinion, if the U.S. wasn't playing the role of big Momma, bailing out Israel at every turn and turning a blind eye to what really goes on over there, then Israel would be forced to reach some true accommodation with the Palestinians.
I don't even think we should just "drop" Israel, but if we are going to keep dumping cash into that country, and sell weapeons to it indiscriminately, then we also have a responsibility to see that Israel behaves like a rational state and starts negotiating in good faith. This means Israel cannot have everything it wants, i.e., settlements need to go.
The best favor we could do for Israel is to force that country to grow up and eventually wean itself from the American taxpayer.
And just how do you "reach some true accommodation" with people who want to kill you? For 50 years Israel has tried again and again to make peace with the arab world. What do they have to show for it, besides spending a large part of their GNP on defence.
The Palestinians say they want the IDF out of the PA areas great maybe they might start bt NOT blowing up pizza parlors and bus stops in Israel?
The Palestinians are being played for suckers by the rest of the arab world. They want them to keep fighting for two reasons, 1 it allows them to point outside their countries for an enemy and so stay in power, 2 they realise that if Israel and the Palestinians ever made peace the two of them would be ruling the arab world within 5 years.