
True, but maybe not the worst possible - see Algeria.  


This was true (and I may add the adjective "stupid") until the Intifada.
Since then, no serious Israeli leader (including Shamir) really thinks
the the occupied territories worth the trouble. The only question became
the question of price and other quantitative detail. The best thing the 
Palestinians can do for themselves these days is to stop the Intifada
and try to live as normally as possible (I know, it's hard under occupation).
Otherwise people might think that five years of stone throwing (as justified
as it may be) has caused the Palestinians an irreversible damage that 
prevents them from running a normal state when the time comes. Currently 
it serves no purpose and it's just a waste of human life and economic
resources.  