Israel's own high court confirmed that Israel holds the West Bank in the legal status of an occupying power through war. By doing so, it confirmed that ALL the settlements are illegal because they breach the obligations of such an occupying power. End of story. Milliband's only saying what the whole world believes. It's just that he's honest enough to say it to Israel's face. Like Goldstone, it probably helps that he's Jewish because he can't be accused of anti-semitism.
One student killed, three wounded at Arizona campus during fight (a)
from the article: Britain: Israeli settlements are 'illegal' and 'obstacle' to peace