I think most Israeli people, officials and supporters, jewish and non, recognize returning to the "Green Line", or pre '67 borders as the fair and moral action, in return for a permanent peace and recognition. I also believe that the cost of the continued occupation or adminstration of the West Bank/Gaza strip is far too high, from an Israeli perspective in financial, ethical and human terms, to continue perpetually. The border represents the 1948 armistice lines - basically the portions of mandatory Palestine controlled by Jordan and Egypt respectively at the end of the war. I don't believe there is any particular moral or political prohibition to either Israelis or Palestinians to claim the land on either side of the line. There were both Jewish and Arab populations in all area of the Mandate, however the original partition get up the Jewish state in the most concentrated areas of Jewish settlement and the Palestinian state in the areas with an overwhelming Palastinian majority. Bridget, you may not agree with my understanding of the history, but I think it is fair to say that both sides recognize withdrawal from the territories and a two state solution as the best immediate chance for peace. That said, I believe that East Jerusalem must have some sort of shared autonomy, and some concessions of the border ought to be made on both sides; The city of Hebron for example has deep cultural and religious connections to judiasm and a significant Jewish population and should be open to Israelis. Likewise, Israel must work to ensure all forms of discrimination against arab citizens, official or not be eradicated within its borders, and should offer full Israeli citizenship to a limited number of Arabs work apply to return. However, there must be a recognition inherent in the peace process of the state of Israel Proper's unique purpose in maintaining a Jewish cultural character, without discrimination, but in the same sense as a state of Palestine would and the rest of the arab world does have a uniquely arab cultural character. Therefore, the Palastinian claim of full right of return must be rescindend in favor of fair compensation for all refugees and their decendents displaced by the wars of '48 and '67.

That's my take on it.