While the French colonial administration in Algeria was collapsing, the Israeli hold on the West Bank hasn't reached that point yet. Making peace now would be an investment in a more peaceful future, but it's not a necessity yet. Ironically the fact that Abbass leadership is keeping the peace so effectively in the West Bank, allows many Israelis to kid themselves that the staus quo can continue like this indefinitely. When the West Bank leadership returns to the path of violence again, there will not be another leader ready to make peace. Plus the Arab countries around the region will go back to supporting the Palestinian war effort against Israel, arguing Israel had many chances and blew them all. To paraphrase Charles de Gaulle: "We're returning to Vietnam because we're the stronger." Well, after the French forces lost the Battle of Dien Bien Phu, they pulled their troops out of Vietnam to keep control of the Algerian colony, which they lost in 1961. The point is Israel may be stronger now, but their best hope is to make an honest peace with the Palestinians so they won't need to be stronger to assure Israel's survival in the future.
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Firebombs and rocks hurled at security forces near Moshav Shekef in the South (Haaretz)