How could Israeli settlements have "gone on" if Israel and Palestine agreed to a withdrawal and the creation of a Palestinian state, with clearly defined borders? How could any remaining Israeli settlements on the Israeli side of the new border possibly be "illegal"??

Barak's very generous offer essentially represented Israeli forgiveness for 3 decades of vicious Arab aggression and terrorism following their failed attempt to wipe out Israel in 1967. Israel, the aggressed party, victim, and victor of the War, could have by ample historical precedent simply annexed the newly won territory. Many others have done so.

Barak's offer included:

Israeli redeployment from 95% of the West Bank and 100% of the Gaza Strip

The creation of a Palestinian state in that area

The removal of isolated settlements that would be transferred to Palestinian control

Slices of Israeli land to be included in the Palestinian state to compensate for the percentage of the West Bank to become Israeli

Palestinian control over parts of Jerusalem including most of the Old City

"Religious Sovereignty" over the Temple Mount (rather than Israeli sovereignty, which had been in effect since 1967)

In return Arafat had to declare the "end of conflict" and agree that no further claims on Israel could be made in the future. Arafat refused the offer.