The settlements employ thousands of unskilled palestinians. Ban settlements goods or palestinians working at the settlements all that will happen is the settlers will hire non palestinians and they will find other markets. The Israeli economy is not about to collapse because palestinians are not going to buy goods made there. The settlements will also not suddenly find they have no money and close. If they were smart the palestinian leadership would accept the current reality of the settlements not just hurt ordinary palestinians whilst the settlements continue to thrive, instead say your politically against the settlements but let people continue to buy what they want and work where they want.
Mexico: Death toll 27 after truck hits religious procession (AP)
from the article: Abbas outlaws goods produced in Israeli settlements