The Israeli government, let's just say, isn't the smartest. I said that the settlements is a complex issue because of all the religious aspects. Most of the settlers are Ultra Orthodox crazy ass fanatics (as all the Religious terrorist groups on the other side that beside yelling like morons Allah Akbar can't say anything) that think that's their land because it's written the Torah. Like I said, it's a complex issue from that point of view and they won't back down, but as I said, I'm basically agree with you. Both Israeli government and Mahmoud Abbas are stupid. Until organizations like Hamas and etc operates in Gaza there will never be even a slight chance of hope for peace. Anything can be reached, it may take some time, but as I said, as long as the terrorist groups will lead the Palestinian people, there will never be a chance.
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B.T.W: en.wikipedia.org/wiki/Gush_Katif
What's good came from this? two weeks after that they started to shoot rockets again. Great gesture.