Let me preface: I am a Jew (though not a very religious one) living in Israel. That said, I just don't see how Palestine being declared a nation is bad for Israel. For one thing, the U.S. could negotiate with the Palestinians that in order to get them NOT to veto statehood, they would have to Immediately return Gilad Shalit. They would also have to understand that one they gain statehood, any cross-border attack would no longer be considered terrorism, but an act of war (in which the U.S. would assist Israel). On the reverse side, I would dictate to Israel that should they wish further U.S. financial, political and military supports, then they would have to immediately stop building in the West Bank and leave any already constructed buildings unmolested should they become Palestinian property in the final border agreement. How is that not good for everyone???
Clashes between IDF and protesters in Bethlehem and East Jerusalem (Reuters)
from the article: U.S. Republicans urge Obama to veto Palestinian statehood bid at UN