Let's ignore for a while that Israel's occupation is a breach of international law and that it has an obligation to end it. What is being asked of Israel is that it recognizes that the 67 borders must be used as the basis for the negotiations and that it needs to stop building settlements during those negotiations. This is not the same thing as returning to the 67 borders and then negotiating on the rest of the issues. Negotiations over all the issues will take place at the same time, this is a one-stage process. But Israel cannot continue to build settlements during that time, because the only thing that that sort of negotiations leads to is a whole lot of stalling and a whole lot more settlements (as we've seen during the last two decades).
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Initial report: Stabbing attack at checkpoint near Jerusalem, Palestinian assailant shot (Haaretz)
from the article: Abbas: Netanyahu's vision for peace is nothing we can build on