Whether or not construction is justified, one does not throw away a possibility of state creation by this. Ben-Gurion saw much greater troubles for Israel in 48' - a simultaneous attack by Arab state combined with an arms embargo by Europe. Nevertheless he declared independence. For Abbas leaving the talks for a few new house in the West Bank, under White House favorable wind, will be an unforgivable mistake. The issue whether building those houses is moral or not is incomparable. Its like a bride telling the groom "I cancel our wedding because your mother told me I can't cook". The truth: West Bank Palestinians want Israel protecting them from Hamas. Paradoxically, the radical extremists Hamas on Palestinian side help the right-wing Israelis.
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from the article: Palestinians expected to leave direct talks