Martin Indyk is giving Israel a thinly veiled ultimatum, either make peace and end the occupation, or lose the protection of the US and find itself completely alone in the world. The United State's best interests no longer permit it to use its veto at the UN etc. to shield Israel from compliance with international laws and norms, so as Indyk and many other are eluding to, Israel has to make a decision whether make peace or walk alone. I personally hope that Israel will choose peace over extremism, but with Likud in power and Lieberman speaking on its behalf, its future looks grim.
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from the article: Indyk: If Israel manages alone, it can decide alone