I don't see that the settlements will affect the eventual partition into two states. Anybody who is foolish enough to build on land that by international does not belong to them will just end up as citizens of Palestine instead of Israel. And that won't be so bad.
Israeli ambassador to U.K.: Elements of left 'in denial' about 'disease' of anti-Semitism (Haaretz)
from the article: Israel pushing ahead with new settlement plans, despite world pressure