Israel has never presented a peace proposal of its own. Never, ever. The closest it came to presenting one was Yigal Yadin's plan soon after the war where he presented a return of the occupied territories and keeping a buffer zone on the western bank of the Jordan river. This plan was shot down by his own "peace loving" Labor party. Different Israeli leaders from both Labor, Kadima and Likud never had any intention of returning the occupied territories even for a comprehensive settlement not only with the Palestinians, but also with the rest of the Arab world. Netanyahu hopes that a nightmare named Obama will be over in 3 years, all he has to do is employ his famous delay tactics and if the nightmare continues for an additional 4 years then Israel will be so isolated in the world to the point where it will be begging for any solution, even an imposed one.
Several injured after Jerusalem protest march against Al-Aqsa restrictions dispersed (Haaretz)
from the article: Needed: An Israeli peace plan