Isn't Jordan a Palestinian nation? When I visited the area ten years ago, it seemed to me that Bethlehem and Jericho and East Jerusalem were quite distinct from Israel, and Israeli encrosion into Palestinian territory seemed to be mostly limited to a few pockets of right-wing settlers here and there.
Of course, there's been a wall built since then, and that would make a big, big difference. For the most part, the problem with the wall is that it restricts the ability of Palestinians to enter Israel for shopping and employment and other activities.
While there are advantages to having a Palestinian state, Palestinians will be forever impoverished if they have no access to Israel. It's a situation similar to the Mexican-US border cities - the two sides of the border need each other.


-Joe-