Pompeo is right. The supposed "illegality" of settlements allows the Palestinians to not work towards peace, They have been sitting back for more than a decade hoping for some international body to hand them the West Bank. They've refused peace offers. This strategy is a failure.
Israel doesn't want to rule Palestinian Arabs. If the legal threat is removed, it gives both parties a chance to actually negotiate and make some choices - if Palestinians really want a state.
I'm sure Europe is not on board with this, and in fact the Palestinians have been able to rely on the EU to be a more reliable ally in this issue than the Arab states themselves. But that position is eroding, and it cannot happen soon enough.
Despite the self-anointed "experts" who have been acting like the Oslo process is still alive, this can and should push Palestinian leaders to realize that time is not on their side and to act accordingly. Up until now they have been smug and acting like they have the upper hand.
The peace process has been stuck in the same pattern for a long time. The idea that Israel can be pressured to do things that are against its best interests has been shown to be false. And, frankly, the demonization of Jews who want to live in their ancestral lands is disgusting.
By giving the "settlers" the same human rights as everyone else the world can start to look at the issue of competing rights, not usurping rights. That was never true and it just made Israel less likely to trust any international body.
My full post about this, along with full text of @SecPompeo comments: elderofziyon.blogspot.com/2019/11/pompeo… 
