First - stopping settlement construction is not a “precondition”. When Israel signed the Road Map and the Oslo Accords, it pledged to stop all Settlement construction. Israel has enjoyed an undeserved decade-long exemption from the obligations of that promise. Second - stop with your own pre-conditions - "If a Palestinian state is established, it would have to be demilitarized and with arrangements that rely fully on the Israel Defense Forces for security." Baloney. not going to happen. Third - and finally - the real question is whether there is or isn't a willingness of you and your government and the people of israel ] to accept a Palestinian state. Would you Bibi, like to live in a series of Bantustans? No? Exactly. The Palestinians will not and you better start accepting it or your 'jewish' state will become history.
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Details of secret talks for Israeli unity government revealed (Haaretz)