Discussing borders before there is even a semblance of peace and security is way premature. Borders, population exchanges, etc., may come about when the parties feel secure enough to do so, and when it is no longer perceived as a threat. In particular, the degree of withdrawals will depend directly on the kinds of institutions which have been set up which can enforce true peace. So Netanyahu has this exactly right--first establish the institutions of peace, then the borders will flow from that.
UN: At least 1,332 Iraqis killed by violence in July (AP)
from the article: U.S. frustrated with Netanyahu over stalled proximity talks