Realist,
You said,
since most of the water resources are located in the west bank it is highly reasonable to assume that occupation of this area was part of the plan if not the main reason.
You're sounding like a Watchtower publication. Highly reasonable? This completely dismisses the relentless attacks launched from these territories against Israel and the hundreds of Jews that were killed in these attacks.
As to these UN resolutions, SO THE F**K what? Where were the UN resolutions against the occupation of these territories by Egypt, Jordan, and Syria (golan heights) who ALSO gained these territories in an aggressive war launched against a state ESTABLISHED BY THE UN.
the palestinians live in poverty and are to a large part refugees...what exactly do you expect them to do?
First, define Palestinian, are they the Arabs who were in the area before 1900, or those that immigrated later? The Arabs in the region didn't begin to identify themselves as "Palestinian" until the second half of the 20th century.
Do they live in poverty? The Egytian Yassir Arafat ain't too poor. Yes, the conditions in the camps are horrible, why hasn't Arafat used the International Aid given the PA SPECIFICALLY to improve these conditions? WHY are there still camps in the West Bank at all. The Camp in Jenin is surrounded now by a town, move out of the camps and into the towns for crying out loud. The poverty situation would be greatly reduced if the PA and the Palestinian people were a bit more active in fighting rather than supporting Hamas and Islamic Jihad, etc. Were it not for the constant attacks the Palestinians would be able to go into Israel and work and make a GOOD living wage. As it is, with the exception of Jordan, the Palestinians live worse in the surrounding Arab countries than they do in Gaza and the West Bank.
What do I expect them to do? I expect them to battle the terrorists in their midst.
The Two State Solution was offered by the United Nations. Israel accepted it, the Arabs rejected it and choose War. What were the Israelis supposed to do, be pushed into the ocean, go back to the concentration camps? Go back to Europe where the holocaust continued even after the end of the war? The Jewish people, to be secure, have to have their own country so they can defend themselves and not have to rely on the fickle good will of others. The UN established the right of Israel to exist, it also offered a Palestinian state which was rejected by the Arabs with an ALL or Nothing attitude. THERE IN LIES THE PROBLEM. That attitude hasn't changed.
