Roger Cohen says Israel is driven by deep but groundless fears. Hamas still preaches resistance but is criticized by more extreme groups for suppressing anti-Israel activity. Several Israeli leaders hint at an unannounced settlement freeze in occupied East Jerusalem, and PM Netanyahu suggests territorial compromise on Arab neighborhoods and a Palestinian state with "temporary borders." Hamas says Palestinians expelled from the West Bank will not be allowed into Gaza. Palestinians say a settler rally is a "provocation." Special Envoy Mitchell meets DM Barak, as Israel offers "gestures" to the Palestinians. The UN says the recent easing of the Gaza blockade shows more can be done. Yossi Verter says Israel cannot avoid US pressure. The Forward condemns intimidation against Judge Goldstone. Patrick Seale looks at the rise of religious fanaticism in the Israeli military. George Hishmeh says Israel is in danger of becoming a pariah state.

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