Even Hamas is willing to accept Israel in the 1967 borders on a long term basis (a long hudna). The Palestinians realize that Israel is a reality which will not go away any time soon, but they can still hope for Israel's removal in the undefined future, as the Crusaders ended up. In this sense, Arafat himself admitted that the Arab rejection of the UN's 1947 Partition Resolution was a mistake, and now Abbas admits that the 2nd Intifada was also a mistake. In their defeat, they all accept the 1967 borders. What about the Israeli side? Likud's basic ideology is that Eretz Yisrael should remain Jewish (by using time-indefinite force - Jabotinsky's Iron Wall), and the religious messianists believe that settlements hasten the coming of the mythical messiah. Admitting the mistake of settling is admitting the mistake of their basic ideology, and this is much harder. What makes it even more difficult is that the failure of their ideology is not so evident to them, it depends on some calculation of benefit vs. cost involved. It may take some time before the full international cost for Israel becomes clear to our ideologues. They should learn from the success of pragmatism in the establishment of Israel, but don't hold your breath until they do.
Northern California wildfire doubles in size, displaces thousands (Reuters)
from the article: Strenger Than Fiction / Israel must admit its mistakes