Otherwise they'd be idiots to accept the increasing encroachment on their territory resulting in an irriversible "facts on the ground". In an ideal world settlements would be used to house dispossessed Palestinians. Arab Israelis who wish to become Palestinians could swop with settlers unless settlers wanted to become Jewish Palestinians. Of course that is not going to happen. The whole settlement movement is a ploy to remove as much land as possible from a future independent Palestine. Build and keep. Why is anybody surprised the Palestinians insist on a settlement freeze. Without freeze they could end up with peace and no viable land to speak of!
UN chief condemns Palestinian toddler killing, urges calm (Reuters)