Not the fence and certainly not Netanyahu, it is Obama's promise that is keeping things down. The quiet is in exchange for lowering western profile in ME, accepting Iran's bomb, establishing a Palestinian state and eventually leaving the ME. Barak Obama has accepted the deal, has started delivering on many aspects of it and Israel is enjoying the quiet. It will also see a Palestinian state and a nuclear Iran soon. And US will feel 8000 miles away.
Law expanding definition of terrorist activity passes first Knesset reading (Haaretz)
from the article: Netanyahu is incapable of making peace - but does Israel care?