When Prime Minister Netanyahu made his comments during the election period about not allowing a two state solution, he clearly was speaking to his base, HOWEVER, he was also speaking on the basis of the reality of the PA and Hamas which are the two official representatives as they are currently configured and with all the negative policies that they act upon toward Israel. I quote just a few examples below, but there are many, many more.
PA paying terrorists who are in Israeli prisons:
PA Brainwashing children to hate Jews and Israel
PA honoring suicide bombers:
Hamas brainwashing children to hate Jews and Israel:
Denial of Jewish history and presence in Jerusalem and temple mount in particular
The PA and Hamas have used almost all of its money to fund terrorism and to hurt Jews and Israel rather than help their people
The PA had its last election in 2005 and did not have the next election when it was scheduled to take place in 2009 because of the crisis between Hamas and the PA. So the 80 yr old Mahmoud Abbas has been president for ten years, with no credible successor or viable political structure able to provide the necessary stability to honor any theoretical or actual peace agreement with Israel. Hamas would most likely sabotage any agreement between Israel and the PA. I know that some colleagues believe President Jimmy Carter who says that Hamas wants to live side by side with Israel in peace, but I don't agree.
With all the instability in the Middle East, particularly in Syria, Lebanon, Yemen, Iraq, Iran, Tunisia, Libya, Jordan, Afghanistan, Pakistan, Turkey and outside the ME in Nigeria, Sudan, Egypt, Ukraine, Russia, North Korea, etc., I honestly don't believe that the most serious impediment to peace in the Middle East is Israel building settlements or wanting to have Israel be known as a Jewish state, or Netanyahu saying during the heat of the last election campaign that he will not support a two state solution.
Let us remember that the days leading up to Anwar Sadat coming to Israel, a respected poll found that the overwhelming majority of Israelis were against making peace with Egypt, but then immediately upon Sadat landing in Israel, all those "angry" Israelis changed and supported making peace with Egypt. When Anwar Sadat spoke in the Knesset (which President Obama refused to do) he actually yelled at the MK's and said how bad Israel was, but when the TV cameras panned the hall and showed the faces of the MK's and many were smiling, because, the PRESIDENT OF EGYPT was speaking in the KNESSET, which meant, that HE (AND EGYPT) RECOGNIZED ISRAEL!
Summation: Let the PA and Hamas genuinely advocate peace with their people with their desire to live in peace with Israel not in place of Israel, and we Israelis, including me, will stand up and salute the Palestinian State. I used to believe Yitzhak Rabin z'l when he said: "You don't make peace with your friends, you make peace with your very unsavory enemies." But I don't believe that anymore, unless our enemies are genuine in wanting to be our peaceful neighbors, and wish no more to be our enemies.