http://www.cnn.com/2011/WORLD/meast/09/14/israel.palestinians/index.html?hpt=hp_t1 Looks like they're going to get observer status nation, at the minimum (and, err, the maximum), in the UN. I don't think this is good for peace in the short-term, but then what is at this point? It's an impossible situation with no way out. The only solution I can think of is blind-folding all the Jews and and all the Palestinians, get some booty-bumpin' music blaring across the Levant, and having an anonymous sex party with no protection. Only after that, can their people be one.
Wow, I was on the Security Council for the model UN when Sealand was pushing for approval. We approved. It is less awesome if the real UN approved, though.
The Palestine story is the most over-hyped story in politics. There are places in Georgia, Moldova, Ukraine, etc. that have long fought for independence and the same recognition and have been ignored. I have no strong opinion about whether they should be a state. Strategically it seems problematic for US interests. But IP is definitely right: it's become impossible to deal with.
Went to high school with a pair from a family of Palestinian atheists. They had to get out of dodge and move to the States.