There's another way to look at the decision, not as a statement about Israel or Palestine but about the nature of law. See Fair Observer's "Google Palestine or Larry Page's Sociological Jurisprudence." Being in a period of transition and "democratic yearning" could explain why Google's approach (if not decision) is so palatable to the 21st century mind.
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Turkey ends 'successful' military operations against Kurdish militants in Cizre (AP)
from the article: Israel needs to borrow a page from Google