"because following a final peace agreement there will be no more settlements, they will either be inside of Israel proper or Palestine" Now the above will only be true if Israel agrees to set borders, which it has refused to do so far...only then will we know what is Israel and what is Palestine. I agree the wall/fence has stopped suicide bombing but I also think that thanks to Abbas the culture in the WB has changed somewhat as you suggest. It's really down to Israel; if it would set borders, we could see what land would be left for a Palestinian state. Also the problem is what to do about Gaza? The Palestinians have the right to want Gaza and the WB to be joined for a "Palestine" but how is this to be done to Israel's satisfaction?
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IDF: Shots fired at troops operating near Gaza border, no injuries or damage sustained (Haaretz)
from the article: Abbas: Mideast peace deal won't happen with me