Israel needs to ensure that the borders are clearly watched with PA and foreign troops monitoring the situation, and say they will withdraw first, and then discuss with the Egyptians and PA on how to have the borders dealt with, and then they will lift the blockade. They should demonstrate they have good intentions and a plan. Of course, there is a problem for Israel. The Likud will probably win, and Netanyahu probably hasn't changed much, and he will irritated liberal Jews in America even more and they will put pressure on Obama to put pressure on Israel. Netanyahu will try to stall instead of negotiate in good faith with Abbas and use Hamas as an excuse just as Arafat was used as an excuse by Sharon. They use the same play book basically to avoid coming to a final settlement. I understand that since it requires discussing the Palestinian and Arab demands for the removal of the settlements, and the politicians have little desire to do so, but Olmert knows that is what must be done. If someone wants to maintain large settlements, then they also want to maintain a state of war, because there is no possible peace in that kind of antagonistic environment. You simply can't have a viable, contiguous state otherwise. What is Israel prepared to do?
It is good that Israel ended the fighting temporarily and so has Hamas. I hope both sides will take sincere steps do ending the fighting in Gaza and the illegal blockade and the unhelpful rocket fire.