Is the peace process in Palestine dead?

There we go again....Israeli elections ended with the elections results heavily tilted in favour of the right wing extremist parties. The right wing, led by Netanyahu's Likud party and supported by Yisrael Beiteinu party, led by Avigdor Lieberman, a former night club 'bouncer' from Moldova, who openly advocates ethnic cleansing of Israeli Arabs and vehemently opposes a two state solution is most likely to form the government. The slightly moderate Kadima party, led by Tzipi Livni, even though ahead of the Likud party by a solitary parlimentary seat, is left without any coalition partners. Looks like the military excursion into Gaza has had its desired effect! Moreover, the current Israeli government has started taking control of large swaths of land in the west bank to build more illegal settlements, a major point of contentions in the progress of the peace talks. As per an AP report more than 2,500 new illegal settlements will be build on the new lands grabbed from the Palestinian areas.
Looks like the peace process is dead even before President Obama starts mulling his options on how to proceed!