AltaGuy, I think you're bang on.
I would add that the settlements have actually kind of bit Israel in the ass in this case. By building them where they did and insisting on expanding them, they have made it virtually impossible to have a viable two state solution. I get that throughout history, the winner gets to keep the land they won in a war, but usually the people there are either exterminated, forced out or given citizenship as long as they become loyal to their new state. What Israel did was basically let the Palestinians stay, made life hell for them to try to get them out and now have them sitting in limbo. You can't really kick out or exterminate 3 million people in this day and age, so the proverbial time bomb is just ready to explode and Israel as a Jewish State will no longer exist.
Maybe this thing will just all solve itself if we give it enough time.
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