I find it fascinating to read news reports about the Sharon/Olmert unilateral withdrawal plans. You just keep seeing quotes like this one from Olmert: "In the next few years, we will change Israel's character to ensure it will be a state with a solid Jewish majority living in defensible borders.." But no effort is made to contextualize what these statements mean. I suspect many readers (and maybe some of the reporters) are missing the subtext. Conservative Iraelis are growing increasingly fearful of the possibility of a one-state solution and the demographic timebomb it presents (as predicted here a couple years ago). Going forward Israel can be any two, but not all three of the following:
2) a Jewish State
3) inclusive of the occupied territories
Olmert is making every effort to secure (1) and (2) (i.e. the "Jewish majority" and "defensible borders") and is trying to dump (3) just as fast as he possibly can (although he intends to cherry-pick some of the better Israeli settlements and appropriate them for Israel).