Netanyahu never had any intention of trading land for peace... like the rest of his myopic right-wing government he wants to keep the land. The expiration of the building freeze was always his bail-out strategy... the Palestinians were always going to pull out of the talks over it, and he was always going to spin it as their fault... he wanted peace, but they did not. Netanyahi stands naked... all is revealed. No one but Israeli right-wingers (and probably not even they) can any longer believe this government wants peace. The only solution is to force Israel to give up the occupied territories with sanctions - economic, social, cultural and academic ostracism - because they will never do it willingly.
4 UN peacekeepers injured in Sinai and taken to hospital in south Israel (Haaretz)
from the article: Netanyahu rejects U.S. guarantees in exchange for renewing freeze