Israel didn't outright reject the 2002 proposal. It said was an interesting document if negotiable. The Arabs said it was non-negotiable. Israel doesn't accept the 1967 borders and an unlimited or large return of refugees. These and other issues the Palestinians will have to negotiate. Both the Israeli right and left will do it.
Israeli forces shoot, lightly wound Palestinian they say was fleeing security check (Haaretz)
from the article: Abbas accuses Iran of trying to sabotage Mideast peace