This June will mark the 5oth anniversary of the Six-Day War. To move the embassy now would be asking for trouble. as there will be trouble anyway. An occupation cannot go on this long without resolution. The problem is Israel will not annex the West Bank and Gaza because that will make the Palestinians Israeli citizens. And they will not give up their encroachments on the West Bank and East Jerusalem because the Israeli Right believes in a Greater Israel which includes those regions. What to do with the Palestinians? Well, that is the question. But it sounds a lot like the  old  racist European question about the Jewish Problem.