That would very much depend on the conditions of the peace treaty. If it were to include the conditions we have here in the US (no established religion, no ethnic discrimination, the government having to pay for property it has expropriated, equal treatment before the law), it would sail through. What the Palestinians want is for non-Jews in Israel to be treated like Jews in the US.
Report: Iran's Culture Ministry refuses to allow Barenboim to perform in Tehran (DPA)
from the article: Bulldozing Palestinian history on Israel's southern hills