Beyond the immediate, an essentially easy, question of whether Israel should be allowed to continue building in East Jerusalem during peace talks (and thus determine part of the outcome by new facts on the ground, there is the basic question: Is Netanyahu really capable of concluding a peace agreement with the Palestinians? The answer to this seems to be a definite NO. Netnyahu's positions are far behind those of other recent government (Barak, Olmert) and there is no hope the Palestinians will accept. For example, giving up the Jordan Valley (which once upon a time was viewed as protection against Iraqi tanks (under Saddam z"l), nor will Netnyahu agree to divide Jerusalem. Netanyahu knew this and was not interested in pursuing peace when running for PM. For example, he agreed then only to self rule, no state for Palestinians. Why did Netanyahu even run for PM? He was "promoting" the danger from Iran and would "solve" it. A ridiculous fantasy, and now the US wouldn't even cooperate.
Donald Trump: Israeli settlement construction in West Bank should 'keep going' (Haaretz)
from the article: Netanyahu leaves U.S. disgraced, isolated and weaker