When Barak was PM, the Israelis compromised and compromised and compromised.
The Palestinians refused to do the same.
Not really true.
The Palestinians were prepared to compromise on a key issue for Israel, the right of return.
That's something Israel cannot allow, a million or more Palestinian refugees returning to the land they owned in Israel.
What Arafat needed in return was a viable Palestinian state. Israel didn't come close to offering that.
Therecan't be a Palestinian state with the existing settlements. Israel will not abandon the settlers in Palestinian territory, and wanted land tolink up all it's settlements.
That would have split the Palestinian state into 3 chunks, with Israeli territory, and border crossings, between each.
Water rights, and final say on all matters affecting both countries, would have remained with Israel.
That's not a deal Arafat could have enforced amongst the Palestinians. Trying to do so would have made him appear to be an Israeli puppet, selling out the Palestinians in return for support from Israel.
A Quisling, if you like.
There are about 60,000 settlers living in isolated settlements in the west bank. The rest live in settlements close to the Israeli border, that can be absorbed into Israel.
With those 60,000 in place, there can't be a viable Palestinian state. Israel cannot abosrb the whole of the West Bank into Israel, to do so would make the Palestinains citizens, and they would have to have the vote. That would give them close to political parity with the Jews, not something Israel is willing to contemplate.
Sooner or later Israel is going to have to evacuate those settlements, and allow the Palestinians a state. The majority of Israelis are in favour of that, it's just not something their government is willing to agree to yet.