Today Arabs are marking what they call their "nakba" (catastrophe), the day of Israel's independence. Seems something is a little different this year. You can read about it here, here and here. If this annual day of protests and violence morphs into another stream of the Arab spring or a Third Intifada, it will be a long and painful march toward September's UN vote on recognizing Palestinian independence.
The Israeli government must stop reacting to events and start initiating. The status quo will not hold and in fact does not even exist.