If the Palestinians declare themselves an independent state, backed by recognition from Obama and the EU, what's to stop Israel from using the right of all nations to treat acts of aggression from the Palestinians as acts of war? Would Israel be justified in invading the West Bank and Gaza in response to rocket attacks and cross-border incursions?
Perhaps the Middle East solution is a defining final battle that puts an end to Muslim aspirations to live on and control lands historically associated with the Jewish religion and the nation of Israel.
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I think you'd agree that a "demilitarized" Palestine is as likely a prospect as a Hasidic synagogue in Mecca.