The bottom line is that the discussion (begun in the 1930's) continues: how to partition the land and achieve two states for 2 people with different national aspirations. Do you think that we would still be having this discussion if the Arabs had won in 1948? or 67? or 73? Once you realize that Israel has entered into negotiations numerous times with parties that would not have accorded it the same terms if they had won, then you will see things in the proper perspective.
Bomb in Lebanon targets bus heading to Syria, no casualties (Reuters)
from the article: Defense Minister: Settlement freeze is a national necessity