It's the only viable alternative open to them any more. Israel has proven itself...over and over and over again, to just be using the negotiated settlement stipulation as a means to forestall final status as it continues its settlement building. And Netanyahu gets real nervous when they start talking about this...because he knows damn well that the UNSC is very likely to recognize the Palestinian state....and THAT would be the end of Israel's game. Its choices then would be to either acknowledge the new state and negotiate exchanges of territory to salvage those larger settlements along the border...or to deny it recognition, maintain its occupation, and suffer international outrage, pressure, boycott, and sanctions. No more 3billion a year plus another 10 in loan guarantees to default on, no more donations from the diaspora, which would outlawed with penalties due to sanctions, and no more alot of things its taken for granted for decades. It'll be coming - you watch. The Pals have been feeling the waters on and off for awhile now...and the water is getting warmer. There's a hidden gift that Netanyahu and his coaltion has unknowingly given to the Palestinians...and all they have to do is reach out and take it.
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Preliminary report: Shooting attack in East Jerusalem's Damascus Gate (Haaretz)
from the article: The end of Oslo