It is possible Netanyahu has a rational plan, whereby Israel aims to get the settlements West of the wall and sacrifice those to the East. I fear that is optimistic. Israel is in the grip of Revisionist Zionists, who believe they are ENTITLED to occupy all of Palestine and expel the Arabs living there. And even if not entitled, they will do so anyway. It is an old 'might is right' belief from 19th C Europe that was supported by Irgun, is official policy of Likud and is subscribed to by the far right - and apparently 56% of the Israeli public. And as Yonatan says, the nature of the Israeli demographic is becoming more fundamentalist by the year. As well as a self-serving belief, it is also a self-serving practice. Settlements = cheap homes, free land, money, jobs for administrators and service providers, it is a whole micro economy in itself. Add state collusion in the enterprise at every level and you have a runaway train that no one can stop. Obama has to put the brake on.
Egypt to hold parliamentary election in 2 phases starting Oct 18-19 (Reuters)
from the article: Can a U.S.-Israel deal on settlements stop the settlers?