Netanyahu has a right wing coalition that includes supporters of a 2 state solution and those who reject it. He went as far as he will go on freezing without breaking them up. If he gets an agreement with Palestinians, Kadima and other parties will support him. Let's not kid ourselves, neither the Israeli left or right will accept the 1967 borders and a right of return. So the coalition will stay intact and the settlers will look for a way to continue settling if the Palestinians have no other solutions to offer. Obama and his leftist Jewish advisers miscalculated how far they could push Netanyahu.
Two mortar shells explode in Golan Heights, no casualties or damage reported (Haaretz)
from the article: The world is sick of Netanyahu's lack of policy