So Israel will continue expanding its settlements in the West Bank. In fact, the Israeli press is reporting that Netanyahu and Lieberman agreed in their negotiations to form a government that Israel would build 3,000 housing units in an area between Jerusalem and Maale Adumim (a huge settlement bloc) known as E-1. Once that is accomplished, Israel will have effectively cut the West Bank in half, making it almost impossible to create a viable Palestinian state. This deal was supposed to be secret, because the United States is opposed to Israel building in the E-1 area.
The Palestinians, of course, will remain locked up in Gaza and a handful of enclaves on the West Bank. In essence, Netanyahu and his two key ministers -- Ehud Barak (Defense) and Avigdor Lieberman (Foreign Affairs) -- are committed to creating a Greater Israel, which will cover all of the territory that was once Mandate Palestine.