A very balanced piece on Israel-Palestine crisis has appeared in the NY Times. It is written by Roger Cohen: http://www.nytimes.com/2010/02/12/opinion/12iht-edcohen.html?th&emc=th
As the author mentions "The U.S. objective is a two-state peace. But day by day, square meter by square meter, the physical space for the second state, Palestine, is disappearing. Can the Gaza sardine can and fractured labyrinth of the West Bank now be seen as anything but a grotesque caricature of a putative state? America has allowed this self-defeating process to advance to near irreversibility." Yes, the USA government and its friends have been bankrolling billions to help those settlements and bring Israel to a status where it is self-defeating USA government's much publicized 'opposition' to the settlement activities inside the Occupied Palestine. In so doing, the USA is losing its credibility as an honest broker.
I also agree with Cohen's honest analysis that if the two state formula is not honored today there will be one state between the river and the sea and very soon there will be more Palestinian Arabs in it than Jews. Then the Zionists would have to answer to their own folks: "What then will become of the Zionist dream?" It’s time for President Obama to ask such tough questions in public and demand of Israel that it work in practice to share the land rather than divide and rule it. But will the Zionist wisdom see through the light on such soul-searching realizations?