Iran’s strategy, explains Grinstein, is simple: Destroy Israel through a combination of asymmetric warfare — like Hezbollah’s war from South Lebanon and Hamas’s from Gaza; delegitimize Israel by accusing it of war crimes when it combats Hamas and Hezbollah, who fight while nested among civilians; “religiousize” the conflict by making it Muslims versus Jews, focusing on symbols like Jerusalem; and, finally, suck Israel into “imperial overstretch,” e.g., keep Israel occupying the 2.5 million Palestinians in the West Bank, which Iran & Co. believe will lead to “Israel’s implosion.”
Therefore, today, Fayyadism, which aims to replace the Israeli occupation of the West Bank with an independent Palestinian state, is the biggest threat to Iran’s strategy. So the smart thing right now would be for the other three parties to have a clear strategy to back Fayyadism. If only. ...
Ever since Israel occupied the West Bank and its Palestinian population in 1967, Israelis have faced a dilemma: Do they want a Jewish state, a democratic state and state in all of the land of Israel (Israel plus the West Bank)? In this world, they can have only two out of three. Israel can be Jewish and democratic, but not if it keeps the West Bank, because the Palestinians there plus all the Israeli Arabs will eventually outnumber the Jews. It can be Jewish and keep the West Bank, but then it can’t be democratic; Arabs will be the majority. It can be democratic and keep the West Bank, but then it can’t be Jewish.
http://www.nytimes.com/2010/03/17/opinion/17friedman.html?ref=opinionGreat article illustrating the challenges faced by all parties involved.