This resolution said something very simple: colonizing occupied territory is illegal, and insisting on doing so is an obstacle to peace. That contradicts nothing that is in Res 242, and what you are trying to argue is this: because Israel EXPECTS TO GET this territory in any peace agreement then Israel is entitled to act AS IF it already owns this territory. In short: you are claiming that Israel has a "right" to put the cart before the horse.
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Preliminary report: Shooting attack in East Jerusalem's Damascus Gate (Haaretz)
from the article: With settlement resolution veto, Obama has joined Likud