The attitude Blatman describes is a necessary element in the right wing end game. The ultimate effect of the settlement enterprise is to annex all areas that are included in settlements to Israel and to exclude all areas with too heavy a Palastininan population from the Jewish State. However, the consequence will be a series of disconnected Jewish cantons on the Wets Bank (and in Israel if Lieberman has his way) surrounded by disconnected Arab cantons, and the only way to maintain the Jewish cantons is to control the Arab ones and that means limiting Arab rights. To justify that, Israel will need good old racist assumptions coupled with military superiority forever. Obviously, it will not work in the long run, and the only question is how long will it take to collapse, and what pieces will be left over after it does. In the meantime, Israel will be a land of paradox. The more intense the Jewish religious zeal, the more morally obtuse it will be. The more cynically realpolitic the Likudniks try to be, the more disconnected from reality it will be. God's laugh will be bitter indeed when the cynics and the zealots reap the whirlwind.
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from the article: Heading toward an Israeli apartheid state