Today, the Israeli Knesset voted to pull out of Gaza and evacuate the settlements there. I think this is a very good thing for Israel, although I suspect it will not lead to peace. There is no exchange of value between the Palestinians and the Israelis, so I don't see a more reserved, malleable public stance from any Arab leadership. However, continued presence in Gaza was getting Israel nowhere, with mounting casualties on the Arab side inflaming tensions even more. This puts the Israelis in a position where they can bargan from a position of strength - "we've pulled out, if someone is out there to talk with us we're ready to talk."
The idea of continually expanding settlements looks like the Israelis don't want peace, and this combats that concept quite effectively. I hope they carry through with the plan.