There is no conceivable way to force either the Israelis, nor the Palestinians, into a reckless, unstable and doomed-to-fail peace process right now.
The reason everyone thinks the international community is pushing for this now is to counter Iran. The logic is that if the Israeli-Palestinian conflict is solved, the Palestinians would not be able to fall into Iran's sphere of influence, plus militant groups would have to disarm.
This is a ridiculous assumption. Firstly, Hizbullah is first beyond all else a Lebanese political party. The political benefits it received after instigating last summer's war with Israel were immense - even though it could be argued they squandered them with the last few months of power-grabbing in Lebanon. Hizbullah uses Israel as its reason for being, and persists with the myth of the Israeli threat to maintain its weapons arsenals, all the while ignoring the idea of handing complete military autonomy and monopoly over to the Lebanese army like in a normal one-military country.
Secondly, Hamas is just as concerned with power. The gun battles with Fatah are over more than relations with Israel. It also is unique in that it is a religious nationalist movement. Its reason of being would be the creation of an Islamesque state in the West Bank and Gaza. Hamas is also a political party, just as much as Hizbullah. It will not disarm.
Thirdly, that is not the reason. The real real is that the international community thinks there is a balance of force. Remember the logic that pushed the United States and Soviet Union to make arms reduction agreements in the 70s. The idea was they were evenly matched powers that could not win a war against the other. That is the idea here. It is based on a myth, that the Israeli military is weak.
This misperception of weakness makes it appear to the Arab World that Israel is vulnerable. It is not. Using the wrong war plan is not a sign that there is a paper tiger in the Middle East.
Israel has allowed the United States to set a lot in terms of the boundaries of the game. The reality is that Israel would incur no benefit from Palestinian independence right now. The West Bank is an economic disaster, while there are no words to describe Gaza. Militarization and anti-Israeli sentiment is too ingrained in Palestinian society for the Israelis to trust a Palestinian state, nor have the will to extend full independence to one after the failure of the Oslo Accords.
The two sides are again on the verge of war. The second Gaza war in one year could be just days away. How could anyone speak of a final peace treaty in such a hostile environment?
Israel has been under siege since its inception, and the virtually unconditional withdrawal from the West Bank plus the uprooting of 80,000 Jewish settlers, would be a horribly encouraging precedent to anti-Israel terrorist organizations and states. Creating a smaller playing field for itself by giving away more land so hastily and so recklessly will only force Israel to strengthen its military and have to act against outside threats with a more limited scope of options.
A peace process at this juncture will only make matters worse. Remember, the lack of an independent Palestinian state is not causing the violence, it is the lack of Israeli security that got the Israelis to hold their ground in the West Bank in the first place.