@Cardsharp,
Yes, you got it right.
But for how long the Israelis will keep gobbling up the land? Palestinians are not going anywhere. In fact, they are determined to breed like rabbit in the West Bank and create their own 'ground reality'. How long more before the Palestinian population becomes way too large to manage, the smuggled arms become too sophisticated for the IDF counter-measures, and the world sick and tired of the Israeli machinations? How many hundreds of years the suggested Israeli Bantustants or Apartheids can last?
Today Israeli main weapon is not the IDF. It is the control of the American Congress. The NY Times article I posted above shows how Netanyahu is trying to counter Obama administrator by using the Congress. Pretty low and desperate. May even backfire.
Anyway, the world peace is held hostage by not the ordinary Israelis who, in significant numbers, would like to pull back to the 1967 lines. But by the religious fanatics of the 'Settler Enterprise' whose heads are the Likudniks and AIPAC.