The danger here is that the Israelis once again make a substantial concession even before negotiations have restarted. I don't think they are prepared to do this. So the way forward is to have "Linkage". Transfer Land to Area 'A' only if it remains quiet in the WB. Further easing of the Gaza blockade that will be reversed if a single rocket is fired into Israel. Clearly Redefine the settlements into 3 categories, Firstly "This is and always will be ours", Secondly "The international community is forcing us to negotiate this bit" and finally "We don't want this bit". Then have a total and complete settlement freeze on the Second and Third categories. This might just be enough to coax the Palestinians back to the negotiating table. The risk is of course that this would be seen as Israel overplaying their hand.
Firebomb thrown during demonstration in northern Israeli town of Umm al Fahm (Haaretz)
from the article: Israel needs to launch a preemptive diplomatic strike