Really silly. Refugees and settlement blocs are what the two parties have to thrash out. You want a precondition? And the Palestinians have indeed done their bit. The PA on the west bank have eliminated violence and terror ( if one excludes the settlers, of course). Negating that, and patting oneself on the back, is one of Israel's abiding problems. One must see both sides in order to deal with others.
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Palestinians: One moderately wounded in Israeli strikes on southern Gaza Strip (Haaretz)
from the article: Only the Bush-Sharon formula can save Obama and Netanyahu