Rather than viewing the conflict merely between Jews and Arabs, it is important to note that the major disagreement here is between Palestinians and Israelis who support the separation of the area into two states and those Arabs and Israelis who reject the partition of Palestine in favor of a one-state solution.
While peace talks are frozen, settlement expansion marches on, threatening Israel's security and international standing and the rights and aspirations of Palestinians, and giving new fuel to the Boycotts, Divestment and Sanctions Movement. Hence the importance of emphasizing this issue at this time.
Every single day Israel continues its occupation and colonial settlement activities, it is acting unilaterally. The idea that it will take another unilateral move does not scare Palestinians who have little more to lose through their newfound, albeit tiny, act independent of their Israeli occupiers.
Naftali Bennett, the leader of the hardline "Jewish Home" Party, who is Israel's Economics Minister, made a significant speech today which tells us how serious the peace negotiations being pushed by U.S. Secretary of State John Kerry have become -- and how worried opponents of the two-state solution are getting.