Could the Arabs Ever be Satisfied?

Goldblog reader James Wynn writes, in reference to my statement that time is running out for Israel to achieve permanent, internationally-recognized borders and diplomatic relations with the bulk of Muslim-majority countries,"

Why do you think this is possible?  If Israel relinquished all territories gained since the start of the 1967 war (which would include the WHOLE of Jerusalem, not just East Jerusalem), the Palestinians will a) prohibit Jews from entering those areas --certainly from entering them safely-- and the Palestinians will begin drumming about the "right of return" to all areas of 1948 Israel. And the Muslim states and the European will reflexively nod their heads. Wishing something doesn't make it so.

I don't know that it's possible or not. I do know that the status quo is untenable. I also believe -- not so strongly anymore, but still believe somewhat -- that a so-called "end of claims" by the Palestinians, recognized internationally, is not something that could so easily be thrown away.