It appears the Obama administration has thrown in the towel in trying to get Netanyahu to agree to a new moratorium on settlements in the West Bank. That presumably means none of the promised goodies either. Now what? Clinton is due to speak at Brookings on Friday, when the next step may be announced.
I favor an end to aid for Israel because a) Israel doesn't need it and b) we need the money and c) it doesn't seem sensible to me to keep rewarding an ally that refuses to offer minimal cooperation. I also favor the US laying out its own preferred solution, perhaps as a way to recognize a Palestinian state in the UN, whatever Netanyahu wants. He has had his chance to frame a deal. Now it's time for the US to assert its own interests and goals.