Updated: The Knesset on Wednesday voted down a bill called the "Settlement Arrangement Law," a motion tailored to legalize settlement areas and outposts in the West Bank facing legal challenges from Palestinians who claim to own the land privately. The vote failed (69 against, 22 in favor) despite severe pressure from the right this week, and following Prime Minister Netanyahu's threat to fire any government minister who supports the bill. On Tuesday the Attorney General approved a compromise plan offered by Netanyahu, which ensures the future of settlement expansion in the West Bank. In a fierce legislative battle to win state approval for settlement…