The Middle East & World War, continued
Israel won't back down. They've finally convinced a majority of the electorate that land for peace won't work. Hamas started it and Hezbollah tried to trump them, Syria is afraid that their government will also be overthrown and Iran is ruled by folks that hate the west, hate Sunni Moslems, hate Israel, etc. Iran is proven to be supporting the terrorist organizations through Syria (whose Sunnis are working with the Shiite Iranians out of desperation for their own political life) and both are garnering not much world sympathy (a possible mis-calculation) but of course the Iranians don't care.
Will this become the next world war? It is still possible but less likely as the world's apologists for these folks, Russia and China, are being a lot less vocal. The G8 conferees made a fairly united statement against the Palestinian/Terrorist/Syrian/Iranian actions which won't bother them but gives any nation thinking of siding with them have reason to re-think such a position. The more lopsided the two sides the less likely that the situation will expand.
Of course, one can't ever discount the insanity of the islamofacists...