There is, however, a way to foster the emergence of a Palestinian partner. The key is to make security performance part of the process of ending the occupation, rather than a precondition for negotiations. Here is how:
Jerome Segel proposes a rapid, step-by-step process toward a two state solution with agreed final borders, but leaving resolution on Jerusalem and refugees "for later". Implementation would be "performance-based", with incentives for Hamas to join the game following a Palestinian referendum/ ratification process.
Comments (hardly representative, but suggestive) suggest decreasing interest in pursuing a two state solution, with more (right wing?) Israelis talking about getting Jordan and Egypt to "take back" (parts of) the West Bank and Gaza. So much for a "Palestinian nation" in this generation.
My own despair: Arafat really, really blew it in 2000-01 (as I thought then, and continue to believe). Actions have consequences, and it's hard to put broken eggs back together again.