Although I think Israel should be able to keep East Jerusalem (well, the Old City, not necessarily the rest of it) and the Golan Heights (which don't displace any Palestinians), yes, they will have to largely go back to the 1967 borders. Judaea and Samaria notwithstanding, the West Bank was not filled with Jews before 1967, and so the settlements are displacing people who need the land to feed themselves.
But after 9/11, it is very difficult for the American people to consider putting pressure on Israel. If the Islamic world stopped supporting terrorists, whether al-Qaeda or Hamas, and completely renounced violence as a solution, then it would be possible for Americans, once they saw that this pledge was serious - after decades went by without Islamist violence of any kind - then if Israel continued to refuse to engage in serious negotiations, America's patience might wear thin.
As long, though, as it seems like the thinking in that part of the world can compass violence against us, it's difficult to care about the plight of the Palestinians.
In October, 1973, remember the oil embargo? Remember the line ups at the gas pumps? And, of course, NATO forces in Europe used gasoline.
France and Britain could have ended up in slavery like Hungary and Poland - and the Arab world didn't even care. Being on the wrong side of history comes with a price tag.
