The nomination is a clear signal from the So-Called President that he favors a one-state "solution" to Israeli/Palestinian relations, or will at the very least acquiesce to Israel's actions towards that end. The Netanyahu government, and numerous figures in and consultant to that government, have clamored for one Israeli state including the West Bank and Gaza.
His Minister of Justice, Ayelet Shaked, has called for the complete no-stone-left-on-stone destruction of Palestine.
Just the other day the New York Times allowed a "settler" (like there was no one on the land already!?) named Fleischer lead op-ed space to call for one-state, and at the end this settler suggested four or five ways Palestinians could respond to a complete development of Israeli settlements throughout the West Bank.
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