Bibi's not happy about this.
As for my opinion on this, I support a one-state solution, but that's not even being considered by the political elite.
EDIT: Also, it appears as if most Israelis and Palistinians support a two-state solution based on 1967 borders (albeit it's a somewhat old poll).
-Sun_Tzu-
Of course the Israelis would never support a one-state solution; it would mean the end of the Jewish state. Right now, the Israeli population is comprised of 20% "Arab Israelis;" if they absorded the Palestinians, it is clear who the majority would be.
I think the only reason Obama is pursuing this whole deal right now is to ward of the Palestinians acting unilaterally to garner international support for their state. Otherwise, it's a pretty maladroit time to seek progress on this issue. I mean, I don't think a two-state solution is going to happen as long as Likud is in power, Hamas is in the picture, or the Palestinians remain fragmented (Fatah/Hamas).
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