NEWS: Israel's leadership is outraged by a settler attack on military bases.The second phase of the Israel-Hamas prisoner exchange is underway. A senior Hamas leader says he very much doubts elections can be held in May. Rights groups say Israel and settlers are destroying more Palestinian homes and wells than ever. Thousands in Gaza attend a Hamas anniversary rally. Israeli extremists clash with police after attacking a historically significant mosque in occupied East Jerusalem. DM Barak says Israeli extremists need to be treated like terrorist groups. Israeli rights groups say a record number of Palestinians have been displaced by home demolitions in the past year.Israeli and Palestinian officials meet to discuss water issues. PM Netanyahu is moving to consolidate his domestic power. COMMENTARY: Thomas Friedman says Newt Gingrich hit a new low in pandering to Israel by suggesting Palestinians are “an invented people.” Haaretz says that Israel must impose its law on settlers. Bradley Burston says Newt Gingrich needs to do a lot of homework. Carlo Strenger says the Middle East is ready to accept Israel if PM Netanyahu will let it. Donniel Hartman says Israel doesn't need would-be American “friends” denying Palestinian peoplehood. Danny Danon says Israel did not mean to offend Jewish Americans with ads warning against life in the United States, but Liora Halperin says it did. Aeyal Gross says it's easy to imagine how Israel would have reacted to rock throwing Palestinians as opposed to settlers. Yossi Alpher says the current peace process paradigm is dead and needs an alternative urgently, and Ghassan Khatib says Israeli extremism is the reason why.