If Israel doesn't dismantle the settlements and allow a Palestinian State, then Israel as a zionist state is dead. The failure of a Palestinian State will mean Israel will be forced to become secular as thousands of Palestinians become FULL Israeli citizens. Going the route the US did with Indian reservations won't work either. The US granted full citizenship and equal rights. If Israel is planning this route, then go ahead and torpedo the peace talks. Hope you zionist are planning a huge welcome party for Palestinian Israeli's.
from the article: Palestinian Authority: Israel must choose - peace or settlements