Rep. Mike Honda says two states are the only path to peace in the Middle East. Hamas prisoners report that abuses in Palestinian jails ceased in October. The LA Times profiles a major West Bank highway that has been closed to Palestinian traffic. Israeli opposition leader Tzipi Livni says peace is possible. Reports suggest that a new US plan envisages a Palestinian state within two years, but Israeli FM Lieberman calls this "unrealistic" and orders his diplomats not to "grovel." A Ha'aretz commentary asks settlers what kind of future they are building, and another argues there is very little difference between the occupation and apartheid. PM Fayyad looks forward to a Palestinian state free of fences and settlements, and Pres. Abbas reiterates that a settlement freeze is the precondition for renewed negotiations. A commentary in the Guardian says Israel is using water to harass Bedouins. The National says Israel is ready for another war in Gaza which is "ready to explode," and profiles bereaved physician Izzeldin Abuelaish. Hamas says it would join Hezbollah in any future conflict with Israel. Time Magazine reviews a year of Mideast missteps. Egyptian clerics quarrel over the legitimacy of Egypt's new barrier along the Gaza border.