Unlike Europe in the 1930's, there are only a couple of countries in the ME in one piece. A settlement of the Palestinian issues does nothing to positively affect the "Arab Spring" which,by itself, could be devastating to the West. If the West completely abandons Israel, it would create the circumstances for another war.
Suspect Bangkok bomber arrested, found with possible bomb-making materials (Reuters)
from the article: Netanyahu's peace stance is running Israel into a wall