The best solution for Netanyahu and the settlers would be for the UN to recognize a Palestinian State within the 67 borders over the objections of Israel and the US. The Palestinians would regard UN recognition as a tremendous victory over Israel. But they would be accepting a bantustan state on 22% of theieir historic homeland. More important, the Palestinian "victory" would be achieved without the evacuation of a single West Bank settlement. So Israel could continue to occupy the West Bank and even expand the settlements while the Palestinians rejoice in their imaginary "victory,"There may be some sanctions and boycotts against Israel, but as long as the US continues to stand behind the Zionist enterprise, Israel will endure and prosper. The biggest loser from recognition of a Palestinian state would be Hamas. So the best policy thing for continued expansion of the settlements would be for Israel to continue to oppose recogniton since that would give the Palestinians a sense of victory without any concessions by Israel.
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from the article: Peres: Israel needs to formulate its own Mideast peace plan