The Pals want their land back - perfectly reasonable, shouldn't be a problem, the UN drew a map of where the borders are. They want the occupying army out - also perfectly reasonable, 'belligerent occupation' is meant to be temporary, it's gone on for 42 years! They want the Palestinian refugees compensated - quite right too, you can't just take peoples' houses and land and refuse to give them back or pay the price. If Israel wants to negotiate some land swops adjacent to the Green Line, they are prepared to do that, as long as it's not excessive. The smaller settlements will need to be vacated, there are too many to provide security for and they've made too many enemies. Other than that, they'll sign a peace and normmalisation treaty and that's an end to it. Can't see what's holding Israel up.
Shaffir to Herzog: Opposition failed to show leadership in political battles against PM (Haaretz)
from the article: Palestinians tell Israel: We won't accept interim deals