You claim that Israel would say "yes yes yes" if asked to withdraw from the occupied territories in exchange for peace. Excuse for me saying it, but that is simply wrong. The arab nations have ever since 1974, after the Yom Kippur war, been willing to offer peace in exchange for the occupied territories. PLO, Syria, Jordan and Egypt. This offer was once again given to Israel in 2002, in the shape of the peace plan of the Arab League. This solution - land in exhange for peace - has repeatedly been up for vote in the UN. Guess who has voted against it? Israel, the US and some obscure islands in the Pacific. Israel hasn't been interested in this solution because it wants to keep a significant part of the West Bank and all of the Golan - as is once again demonstrated in PM Olmert's recent statement that Golan will belong to Israel "for ever".
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from the article: Is Israel a partner?