As to Question 1, the answer is that the sides' positions are too far apart for their agreement. Strong Israeli nationalists have made clear their demands (eg. Jerusalem), and it's doubtful that Palestinian negotiators have the mandate to agree to them. It's like a man being robbed of his house. He can't resist it on the ground, but he can't agree to it without intense pressure from all sides.
Islamic State militants blow up ancient Arch of Triumph in Palmyra (Reuters)
from the article: How long does Israel have left to live? (a self-test)