Israeli leaders know the significance of the Arab peace initiative, and they know it very well. What is buried in their psyche is the need to preserve the Zionist vision, which on some deep level they equate with a "Greater Israel,' a kind kind of utopian dream. So far, with U.S. massive financial, military, and diplomatic assistance, Israel has been successful in maintaining its hold on its as yet unrealized dream of a powerful Jewish state connected to its ancient roots. The occupation, and the settlers in their ever growing settlements represent in part the realization and the direction that the Zionist vision has taken thus far. Psychologically, what is at stake is the disintegration of this vision if a part of it, Eretz Yisrael, "the land of Israel," if forfeited to the Palestinians. This is what appears to be the problem: the overwhelming resistance of the leaders in Israel to accept the fact that they of necessity are going to have to revise their vision of the future to include a two state solution to accommodate the reality of millions of Palestinians living in their midst. They, the Palestinian people,are not going anywhere. They have been tried and tested in their resolve not to be separated from their homeland!
Ya'alon met with security chiefs to assess situation following developments at Gaza border (Haaretz)
from the article: Get Arab leaders to recognize Israel and you, John Kerry, might prosper