The Palestinians do not really want their own state. They like things just the way they are. Furthermore, the Palestinians are forcing Israel to spend a fortune in building settlements against their will. The Palestinians know that they will receive these settlements in an eventual peace so they want Israel to finish building them before they accept that peace. Israel is far too nice in accomodating the Palestinians. Israel should just halt all settlement construction to show the Palestinians that this is all they can expect to get. This maay encourage the Palestinians to finally make peace.
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Clashes between IDF and Palestinians in Joseph's Tomb after Jews pray at site; none hurt (Haaretz)
from the article: Abbas: Israel to blame for failed peace talks in Jordan