Those who think Israel can "buy" peace by giving up those territories should read this.
...[I]n 1967, Egypt, Syria and Jordan again attacked Israel, again with the repeated announcement that the objective was its "annihilation." Israel turned the tables and won the war. Soon after that victory, Israel offered the Arabs to hand them all the territory it had regained, in return for peace. At a conference in Khartoum the unanimous Arab reply was: No negotiations. No peace. No recognition....[h/t to BenS]
It was shortly afterward that the movement of Jewish settlers was launched. It is noteworthy that the last defining document that underwrites the legality was the Geneva Convention of 1949. It dealt with occupied territories. Its second clause, stating its scope, makes it clear that it does not apply to the Jewish presence in Judea and Samaria - because Jordan was not a sovereign possessor but an illegal invader, and similarly was Egypt an illegal invader of Gaza. Israel liberated both areas, restoring them to the territory of the Palestine Mandate of 1922.
From the point of view of international law these settlers are as legal as any resident of Manhattan or of Shreveport, Louisiana.





It's either that one side dies (highly improbably) or people simply move on (less improbable but also improbable).
It does seem to me that Israelis are better off because of their economic success and cosmopolitan culture and freedoms and such, young people are less indoctrinated (in relative terms) in regards to this blood feud.
Plus, if you're richer you have more changes of getting a Nintendo Wii and a copy of Mas-Colell and then you'll never want to live your house.