Someone has to take a lead in the peace process at the moment extemists on both sides are dictating what happens. Maybe just maybe Israel should take a chance and freeze all building in the West Bank now, this will rmove one of the arguments used by Palestinians for the continuation of violence. This is what the British government did in Ireland when it began talks with the IRA despite previous governments stating that they would never negotiate with a terrorist group.
Egypt to hold parliamentary election in 2 phases starting Oct 18-19 (Reuters)
from the article: Construction in West Bank settlements booming despite declared freeze