Except for verbal slogans Israel never agreed to concede the "settlement blocks" beyond the Green Line in the West Bank. As a matter of fact the crawling annexation of the West-Bank has been sustaining since the Oslo Agreement in 1993, when the Palestinians agreed officially to accept only 22% of the pre-1948 Palestine, recognize Israel within the Green Line and thus concede 78% of the controversial land. The Gaza disengagement was but a tactical act to keep the "settlement blocks" impeccable. As long as the majority of the Israelis are not ready to make their compromise and pay their fixed reasonable price for peace, the dynamics of the political process is, unfortunately, getting worse.
At least 1,000 Israeli Arabs protest death of Palestinian infant in deadly West Bank arson (Haaretz)
from the article: A new consensus