When your enemies wish to wipe you out (for those who disbelieve this basic fact just look at what Hamas and Hezbollah actually say) it would be crazy to give them anything. In the Middle East, if you give an inch, the other party asks for a foot whereas if you offer nothing they may eventually make peace (albeit a cold one as existed between Egypt and Israel for many years). The Gaza experiment has failed. Kadima gave the Palestinians Gaza and they trashed its agriculture. What did Israelis get in return? Rocker attacks in great profusion even as far as the morons in Tel Aviv who supported this crazy policy (while the Tel Aviv folk chose each war time to visit their relatives in Jerusalem). No! A better negotiating tactic would be to say to the Palestinians that until they acknowledge (in Arabic as well as in English) that Israel is a Jewish state, then there will be no further negotiations with them.
Israeli soldier collapses, dies from heatstroke during visit to Jerusalem's Old City (Haaretz)
from the article: Teaching Israel how to negotiate