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That is definitely small splinter groups within Israel that under the current political system often wield the balance of power.
The problem with the two state solution is that Israel refuses to allow Palestinians sovereignty within their mini-state, and show no sign of allowing even the West Bank to exist as a contiguous territory, instead of as a collection of micro-provinces divided by lines of transport and ubiquitous checkpoints.
And under the principle of self-determination, which is the basis for Israel to claim a right to exist, the two alternatives are a sovereign Palestinian state, with border control, no colonial occupying force and Palestinian control of all transportation routes, or a single state. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
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