There is a very good reason for this demand. First its an admission by the palestinians that there is nothing left to liberate once they get a state because many palestinians see all of Israel as belonging to palestinians and 2 state is about creating a launch pad to eventually liberate all Palestine. Admit Israel is a jewish state and its saying that land belongs to jews not us. Its also important if we are going to kill the so called refugee issue. George Bush & Ehud Olmert agreed jews have a right of return to Israel and palestinians have a right of return to the palestinian state not Israel. I do think though that whilst Bibi will insist on this eventually at the moment its just a message to Abbas that he can also play hardball and so if Abbas makes pre conditions then he will also make pre conditions and so if Abbas is smart he will stop playing games sit down and NEGOTIATE no strings attached. Abbas has just proudly admitted himself there has been no agreements because palestinians refuse to compromise on anything.
Guatemala judge orders detention of president in corruption scandal (Reuters)