With Hamas not at the table, and settlement construction soon to resume, the odds against success of the latest talks are staggering.
Here's a suggestion that might help break a stalemate in the talks - Israel should cede the territory of Gaza to Egypt. Egypt has a long history of dealing with the Muslim Brotherhood, which forms the historic roots of Hamas, and disputes will be Arab-on-Arab, freeing Israel from being the bad guys there. It also resolves the disputes between Hamas and Fatah as to the legitimacy of each's government, although Fatah is not all that legitimate either since they have cancelled scheduled elections and current terms have long expired.
At the same time, focus talks on the widely-accepted establishment of a Palestinian state in the West Bank, with the complications of Gaza removed.