Depends on the ideology. Israel doesn't NOT recognize the need for the Palestinians to live in dignity with their own state. How can there ever be a solution when the same ideology is not true for the Palestinians? Macho strength, histrionics, hype, are not the deciding factors to the problem. Intentions are the key to the solution.
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Preliminary report: Stabbing attack in Jerusalem near Damascus Gate (Haaretz)
from the article: Abbas: Palestinians won't launch new intifada, despite frustration