I know there are denialists who will never pronounce the two state solution dead, no matter how old and rotten the corpse. Isn't this just another shovel of dirt on the quite decayed body? Akiva Eldar in Haaretz:
The [Israeli Defense Force] Civil Administration is taking steps to increase state-ownership of West Bank lands, an internal military document reveals. The policy enables increased construction not only around settlement blocs like Ariel, Ma'aleh Adumim and Gush Etzion, but also in strategic areas like the Jordan Valley and Dead Sea....
The inclusion of the Jordan Valley, northern Dead Sea and area surrounding Ariel in the "settlement blocs" whose takeover the administration is advancing, would prevent the establishment of a Palestinian state with territorial contiguity. In addition, the scope of land in question thwarts the possibility of exchanging areas in a peace settlement, according to the formula presented by U.S. President Barack Obama on May 19.
This is because on the western side of the Green Line there is not enough open land to compensate the Palestinians for such an extensive annexation