Israel has always rejected the arab plan because its an ultimatum not a peace plan, either accept it in full which means giving up every inch of land liberated in 1967, close all settlement and accept a right of return if your not willing to agree to even one of those demands then there is no deal. If Abbas goes along with the arab plan he can demand everything he is demanding through negotiations and more because there is no obligation for him to compromise on even the most trivial issue. If we want PEACE it has to be NEGOTIATED. Its also a fact that the arab plan is to hardline for most Israelis to accept so when the government holds a referendum on the deal there is no way it will pass so whole thing will be down the toilet. If the arabs want a SERIOUS deal then it must be negotiated which means BOTH sides give as well as take its not Israel gives all and arabs offer nothing in return.
from the article: Abbas looks to Arab League to revive its 2002 peace plan