I do not understand what is the big deal about the settlements being an obstacle to peaceas long as they are not built on land owned by or stolen from private Palestinian owners. If a peace deal is reached there are three possible outcomes for the settlements: 1) Israel will withdraw all Israelis from them (as it did in Gaza and the Sinai). This will leave the new state of Palestine with a large stock of usable homes and infrastructure. 2) Israel will swap part or all of the land on which the settlements are build for land in Israel, possible land with a high percentage of Arab villages. This will reunite the Palestinians in Palestine with the Israeli Palestinians. Since the Palestinian right to a claim to self-determination is based on them being a distinct people, they ought to be glad to be reunited with their brethren, who are after all richer and better educated at this point than they are, and will be arriving in the new state of Palestine with all their land, homes and worldly goods (as opposed to the case of the Jews from Arab lands who emigrated to Israel after being kicked out of the Arab countries.) 3) The settlements and settlers will remain in place and become Palestinian citizens. Even if all of them remain in place, Palestine will still have a smaller percentage of Jews than Israel has Arabs. Since Israel is not demanding that all the Israeli Arabs leave, nor demanding that all the areas where they live be swapped, Abbas can hardly complain.
UN chief condemns Palestinian toddler killing, urges calm (Reuters)
from the article: Abbas: I choose Netanyahu as my partner for peace