Israeli governments over the last 43 years have consistently lied to their people about the legality of the settlements. All that BS about the territories being 'disputed' instead of occupied. During those 43 years Israel has constructed for itself a persona based on a united Jerusalem and on hanging onto significant chunks of the WB. There is no way Israel is going to give all that up voluntarily.
Death toll from car bombs in Iraq rises to 56 (AP)
from the article: Israel fears Obama heading for imposed Mideast settlement