Chapter 4 argues that diplomatic and demographic challenges are almost as dangerous to Israel’s future as military threats. Efforts to isolate and delegitimize Israel and constrain its freedom of military action have had mixed success. Israel has broader ties than ever, sanctions and boycotts have achieved little, and it continues to act militarily. Nevertheless, Israel’s international standing has deteriorated severely, and the nature and outcome of military operations have been affected. No issue has undermined Israel’s standing more than the settlement policy. Inexorable demographic trends, stemming from the control of the West Bank, threaten Israel’s Jewish and democratic character. Already today only a small majority of Israel and the West Bank are Jewish. Ongoing settlement undermines the viability of the “two-state solution” and the point of no return may be nearing. Demography also explains Israel’s reluctance to conduct ground maneuver, undermining its ability to achieve military decision.