This Abbas offer has nothing new beyond what the Palestinians were willing to agree to in Taba (2000), so it must simply be their opening position, inviting Netanyahu to state his position on borders. The 2.3% territorial exchange means that each settlement within what Israel considers "blocks of settlements", will have its footprint, plus a road leading to Israel, exchanged, but not the whole block. To keep the blocks, it required about 6% of West Bank in 2000. Nowadays, probably a little more. Abbas needs to agree to triple the amount of territory exchanged if the "blocks" are to remain in Israel. Of course, Netanyahu's position requires much more. Netanyahu wants to keep the Jordan Valley as well (plus the hills overlooking it). The Jordan Valley was viewed as protection against Iraqi tanks, but Saddam is dead, Iraq has no tanks, and the IAF can put an end to an Iraqi invasion force. These two sides will not sign a peace deal. The US better come up with some peace plan and impose it.
Yemen's vice president reportedly lands in Aden (Reuters)
from the article: On eve of Obama-Netanyahu meeting, Abbas offers Jerusalem compromise