Yes, very sadly, the removal of the barrier can't be done while there are Palestinian suicide-bombers. And yes, with peace and security arranged, it should run on the border, not into the new Palestinian state. Bith side should be committed to chack no terrorists cross over, and pursue them anywhere.
U.S. judge says Clinton may have to testify in email lawsuit (Reuters)
from the article: Abbas must unilaterally declare Palestinian state