"Syria would hardly place the extremly high risk on their current relations with these parties and Iran for a peace process which can possibly fail. " Thank you for clarifying the Syrian position. You have also made it clear why Israel is smart to refuse to give back the Golan given how the Syrians operate. "These parties" being Hezbollah and Hamas are valuable to the Syrians which therefore makes peace with Israel impossible. As others have expressed it would be foolish for Israel to give back strategic positions if Syria still wants to make war with Israel by aiding and abetting her enemies. An embassy in Israel or an Israeli embassy in Damascus means nothing if Syria still has belligerent intentions.
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from the article: Report: Syria willing to consider phased Golan pullout