I think Netanyahu views the Trump deal as nothing more than excuse for continuing what he wanted to do all along. I don't think a 2 state was ever part of his agenda.
Netanyahu announces new settlements days before Israeli election
Benjamin Netanyahu has announced he will move ahead with a highly controversial plan to build settlements east of Jerusalem, in an apparent offering to hardline nationalist voters less than a week before a general election.
Israel’s prime minister said he would reopen the long-dormant project to build 3,500 homes for Jewish settlers in one of the most sensitive areas of the occupied West Bank.
Palestinians and their global backers argue the plan
would virtually cut the West Bank into two enclaves and completely encircle Palestinian neighbourhoods in the holy city. It has long been seen as an impassable barrier to any viable future Palestinian state. Upwards of 2,000 Bedouin people living in E1 could also be displaced.
The analysis from The Guardian is more on the sensationalist than on the factual side.
Ma'ale Adumim is an integral part of Jerusalem,
as far as I see, it was never assumed to be included in the autonomy.
The 3,500 homes, are actually apartment units, can be 3,500 private houses, or 65 level towers,
in any variation. Basically all aligned with the TAMA100 trajectory, infrastructure development plan,
to make Jerusalem the largest city in the country.
Abu Dis, as designated in Trump Plan for the Arab capital is outside E1.
The PA comments are overall comical, just last week they declared issuing building permits in C.
Bedouins might be required to move, though we haven't seen the planning, but it won't be displacement, that's a blood libel. More likely a financial package with infrastructure in nearby location.
And let me explain one simple thing, they claim new neighborhoods will encircle the neighborhoods under PA control, but they're already encircled, have been this ever since they had it, neither geographically creates any enclaves. It's evident for anyone who drives around in a car - everything closely encircles everything, especially in the area of Jerusalem. Probably half of what looks as separate villages on the map are in short walking range, and when in such proximity basically indistinguishable.
(To conclude)
Basically add the 3,500 apartments or not, the Arab neighborhoods in Jerusalem anyway encircled by Jewish once and vice versa. To claim that this prevents their statehood, adds to a whole bunch of their other ridiculous excuses for their dysfunction.
And on the side note, the "what Netanyahu wanted all along",
well frankly, I'm an Israeli and have no idea what he actually wants,
and to even assume a leader of his caliber would reveal his strategy, is naive at best.