As usual, Israel is pleading, and the Palestinians are demanding. Essentially Abbas reiterated that he won't make any concessions. He still wants all of the West Bank as well as East Jerusalem. This is ridiculous. Until he even pretends to mention that he is willing to make some concessions, peace is impossible. The offer Israel should make is more modest, but one having real advantages over the current state of affairs. For example, from maps one can see that the separation wall follows the Green Line very closely, except in the area around Jerusalem. I don't see the problem of making about 95% of the West Bank a contiguous Palestinian territory. Of course it should be limited in some ways, for example to prevent the Palestinians from monopolizing the Jordan River (or what remains of it, anyway).
Israeli soldier collapses, dies from heatstroke during visit to Jerusalem's Old City (Haaretz)
from the article: Israel, PA agree to strive for deal by end of 2008