The trajectory of current political, social, economic, diplomatic, and even military events is going strongly against Israel and is changing the balance of power between it (and it's backer) and the rest of the Middle East. The democratic voice that will arise out of the Arab Spring will further entrench these trends as the people have shown far more serious anti-Israeli sentiments than the hypocrisy of their defunct historical leadership. When Israel's position weakens to a point when it is in their interests to negotiate, then the real issues will be attacked and solved. There can't be fair negotiations without a balance of power.
More than 2,000 migrants threaten to break out of Hungarian camp (Reuters)