In Israel's eyes, "working on that peace" was tossed when Palestine went ahead with the statehood bid rather than negotiating a permanent solution with Israel. If Palestine isn't playing the game, why should Israel pretend to do so?
Israel has been pretending to play for over 40 years. Its always the same thing. Israel does not wish to negotiate a permanent solution, and why would they. Up until recently Israel could call the shots with pretty much impunity. Yet over the last 40 years Israel has settled more and more disputed land and refuses to return to its 1967 borders. Israel has routinely cut the people of Palestine off from the rest of the world, segregating them from the greater Arab Community and literally fencing them in behind armed guard and restricting their access to the sea.
Numerous time Israel has marched into palestine and murdered thousands, numerous times have they instigated responses. Israel has no lust for peace, they want the land they deem theirs by destiny, and continue to take it through force (or display of force) and have been for 40 years. Israel is the proud holder of the largest free air internment camps in the world. Which is rather Ironic considering the stark similarities to pre-"final solution" internment of Jews in Europe.
Thats not to say that Palestine has not shown they wish to have a diplomatic solution either, they have of course over the years thrown the first stone. But Palestine has always lacked one thing, support in the world body. Throughout history Israel has been able to use the power of the UN to dictate its position in the Middle East, with traditional allies in France, UK, and the US backing them up. Palestine now has an equal opportunity to plead its case on the world stage through its new found ability to access the powers of the UN.
I also find it humorous that the US so adamantly condemns Palestinians efforts to establish their own nation, and attain freedom from the tyrannical Oppression of their local masters in Israel. I mean **** the US was built on a social/political revolution that resulted in a War. These people are referred to in history as patriots, today we call these people terrorists, and radicals.
How hypocritical to say Palestine didn't want to play by the rules Israel demanded they follow...for illusions of peace, still trapped behind a fence, cut off from their greater community, cut off from the world.