Palestinians do not react well to appeasement. In their view it is a weakness. Israel must never have a so-called "good-will gesture" as it will be misinterpreted by palestinian side as a weakness. Palestinians have only one major flaw that will never allow them to have a state and that is their unwillingness to recognize Israel as a vibrant Jewish State. As a matter of fact you ask any palestinian and they will tell you that Israel should not be there at all. I guess muslims do not read a bible where every other word is Israel and Jews.
Australian police arrest 5 over shooting 'linked to terrorism' (Reuters)
from the article: UN chief calls on Israel to make 'goodwill' gestures toward Palestinians