Yes indeed the settlements are a threat to a solution to this intractable problem and yes, violence on both sides is as well I don't call it "terrorism" because it is just violence committed by both sides and I do not see how one can call one such act more evil than the other. . But it should be always borne in mind that accepting the facts on the ground and arranging a peace that involves land swaps, is a bitter solution, rewarding Israel for it land thefts. If there was real fairness, Israel would return all the occupied land.
Israeli PM to Palestinian President Abbas: We must fight terror together (Haaretz)