As every student of negotiation knows, successful agreements always involve a trade-off of things of value: You get X, for which I get Y. The Saudi Plan strongly hints at such a trade-off in its call for a "just solution" to the refugee issue, and not for a full return. The trade-off is: Israel returns to '67 borders (including E. Jerusalem) with only minor adjustments in exchange for Palestinians accepting to limit "return" to the new Palestinian state. The problem, as Eldar alludes to, is that neither side has the leadership needed to make these two huge concessions. Could Rabin and Arafat have gotten there? Maybe. Olmert and Abbas? Extremely unlikely.
At least 1,000 Israeli Arabs protest death of Palestinian infant in deadly West Bank arson (Haaretz)
from the article: Leaders have been ousted for less