Netanyahu hasn't forgotten that the moratorium on building didn't include E.Jerusalem, and only slowed building in the rest of the West Bank. He's trying his hardest to fight the tide which, if the British government is a good indicator, is against him. The concensus is that the settlements are illegal and represent the biggest precondition, because their expansion only allows for Palestinian bantustans and a non-contigious state. The Palestinians will understandably refuse such an offer when they have international law on their side, and the only alternative to a viable Palestinian state is annexation and civil rights.
Indonesia government aims to outlaw insulting president, sparks uproar (Reuters)
from the article: Netanyahu: I'm ready to get into my car and go to Ramallah for talks