Anyone, with a brain, knows that Palestinians will not give up their claimed right of return and this is required for a peace settlement. The Palestinians complain about occupation (to secure condemnation of Israel), but the end goal aspiration (undermining Israel's demographic viability) still drives Palestinian peace process objectives. Thus the only way forward, is via disengagement. An end to occupation which is premised on Israel's security needs and asserts Israeli claims/vital interests in the peace process is a sensible fall back position. It's strength discourages those ambitious to destroy Israel and minimising occupation is a vital diplomatic strategy.
Law expanding definition of terrorist activity passes first Knesset reading (Haaretz)
from the article: One little telephone call