[anotherview]

You are mostly right. The "Green Line" is not an internationally recognized border. It's the 1949 armistice line between the Arabs and Israel. Annexing the West Bank is a demographic nightmare for Israel, but Israel cannot go back to the indefensible 1967 boundaries. New borders must be drawn based on demographics, or, as Ehud Barak put it: "Use here, them there". This is essentially what was offered at Camp David. I differ with Barak in that I would never support redividing Jerusalem.

The problem is, to the Arab, concessions are a sign of weakness. The unilateral withdrawal from southern Lebanon was seen as a Hizbullah "victory", and it inspired the current intifada. Israel cannot repeat that mistake or go down the disasterous Oslo road again. However Israel eventually disentangles itself from the Palestinians, it must do so in a way that guarantees it's security and is seen as strength, not weakness. Clearly any withdrawal must be done as part of some sort of agreement, and failing that, it must be accompanied by annexation. The Palestinians must see themselves as only losing, not gaining anything, through terrorism.

[Dog Gone]

That's right, but it's in Israel's interest to create a Palestinian state on the West Bank. The 1967 borders won't work, but something will.

Decide what that is, build a wall to separate it, if necessary for security, and move on.

At some point, even the Palestinians will realize that they have most of what they asked for. And the demographics for Israel remaining Jewish will remain intact.