This current Israeli government would just scoff at anything close to the 1967 boarder and East Jerusalem being the capital of a Palestinian state, so what is the point to have direct negotiations? Maybe if the US passes these papers along it will seem to Israel that the US actually wants a free viable Palestinian state...and we can't have that! The US just wants to talk about a free Palestinian state while showing "concern" over settlement construction. These talks should be transparent so we can see the failure of the Quartet directly.
from the article: U.S. warns Palestinians: Stop leaking content of Quartet talks