It assumes the lack of prospects for peace. To the extent that reprisals may not stop the terrorism, a lack of reprisal wont stop it either. The US is not going to hamstring Israel by forcing her to take hits without a response. That would just be a bad strategy.
It's bad strategy for Israel to pull out of any territory without some kind of security arrangements. There are no assurances that the PA will even accept Israel withdrawing from the 1967 border, or act to prevent assaults from "rogue elements" even if they did. The PA is useless... Israel is on it's own, it has no partner for peace.
Quite so . …. can Israel devise it's own solution?
What ever happened to "defense", Israel only uses retaliation. Build the often talked about wall. Stop Arabs from entering or leaving. That stops the suicide stuff. Then work on countering the "over the wall" shots. Or is Israel so spread out with all the settlements that it has no border that’s defensible?