Israel Resumes Building in West Bank: Implications?

The 10 month “moratorium” on building in the West Bank territories has expired…and the building has resumed.
Obviously, the Palestinians are unhappy about this-but what did they expect?
My question: is this enough to start another war with Israel?
It seems (to me) that Israel holds all the cards-what would the Palestinians have to offer them in “peace negotiations”?
I think this is actually a very good development-it will bring the whole issue to a head.
By the way, are commercial banks in Israel financing these houses? I would think holding such a mortgage would be a risky proposition-unless the government has no intention of ever giving up this land.
Israel should announce that it will not cede any more territory, and will settle the land at will-this will clear the air and remove any doubts.
What do you think?
Or will this amke Abbas go home?

Wel problem is that the Palestinians have been gatting a lot of political capital from being the victims (relatively non-violent) and the only thing they have to trade the Israelis peace, which the Israelis already have more or less.

Israel might be more concerned about Iran than Gaza right now and they mighht not be convinced that making peace with the palestinians would be enough to make Iran shift course.