It is probably better this way with a stalemate, where Israel blames the Palestinians and the Palestinians blame the Israelis. The Oslo "peace process" just led to the Second Intifadah. Right now, it is relatively quiet in the West Bank: The Palestinian economy is booming, the PA and the IDF are both fighting terrorism and cooperating in some areas, so maybe we should leave things "as is" for now and not try to stir up the hornet's nest.
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from the article: U.S. officials: Barak 'deceived' us about his role in peace process