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This situation would not exist if Israel had followed through with driving the Arabs out of the region after the Six Day War. Now the Antisemitic UN condemns Israel for everything. At this point, I think it is quite obvious that no matter what the Jewish state does, it will be condemned. In an ideal world, granting the Arabs a Palestinian statehood would be an ideal solution, but I cannot help but to think the Arabs would still call for the destruction of Israel.
While Israel and its mouthpieces try to distract the big elephant in the room, by repeating ridiculous distracting arguments like: "They will not accept Israel as a Jewish State." - like anyone is obligated to do so - we are now decades into the Israeli occupation. The realization of a Palestinian State continues to move further away. Especially with the always increasing illegal settlers in the Palestinian territory, which are over 620,000 now. Despite the song and dance to the international community, Likud's official platform has been to never allow a Palestinian State and Netanyahu, in 2015, running for re-election, vowed that there would be no Palestinian state on his watch. Security is another excuse given for the foot dragging by Israel. Here is an article that looks at Israel's unwillingness to allow a Palestinian State: what explains Netanyahu’s opposition to Palestinian statehood? We can only find an answer to this question by widening the scope of our enquiry, and accepting the unpleasant but undeniable fact that opposition to Palestinian sovereignty is a position that has been shared by every single Israeli government, and remains so today, across the political spectrum.
Despite the great resistance by the ultra-nationalistic zionists, who have battled in every way possible to prevent the recognition of a real and legitimate Palestinian State, slowly but surely, things are changing. Google has now recognized the state of Palestine. Google is de facto recognizing a state of Palestine - at least on its local home page in the Palestinian territories. Google spokesman Nathan Tyler said Friday "We're changing the name 'Palestinian territories' to 'Palestine' across our products." He said Google consults with a number of sources and authorities when naming countries and is following the lead of several international organizations. The move comes after a UN decision last year upgrading the Palestinians' status to "non-member observer state." Link