You are correct. In 2009, Mr Olmert offered generously to Mahmoud Abbas and it was the best offer Abbas or Arafat had been proffered. He did not offer return of Palestinian refugees to Israel, but he proposed a real breakthrough. The myth is that Abbas rejected the offer. The fact is Abbas did not turn Olmert down. In fact, Abbas said with that offer (93% of West Bank and Gaza) "we can have peace in 2 days." The Quartet agreed, and requested Israel make offer binding. It never did.
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Preliminary report: Stabbing attack in Jerusalem near Damascus Gate (Haaretz)
from the article: Response / Henry Siegman on Burston and 'Israel's pathology'