"That would be much easier for them than what Israel is being asked to do: evacuate tens of thousands of people from the settlements and divide Jerusalem" You cannot have your cake and eat it. If you do not want to evacuate 400,000 Israeli and do not want to leave occupied land there will be no peace. As far as I know all involved states promised peace when Israel returns all occupied land.
Law expanding definition of terrorist activity passes first Knesset reading (Haaretz)
from the article: Where is Anwar Sadat when Israel needs him?