1) I'm not regretting that Bush didn't move to try to broker an Israeli-Palestinian peace for the past 7 years; given his track record, I think we'll be lucky if he doesn't manage to inflame the conflict there. The one thing learned early on in the Bush presidency was that, if the President turned his attention and concern in your direction, you should ruuuuuuun.
2) I think the two-state solution is a ship that has sailed; we're going to need a 3 state solution at this point; Hamas shooting at Farah demonstrations in Gaza, the PA shooting Hamas members in the West Bank.