You said it correctly, Janice. If I had a crystal ball I would predict that some kind of agreement will be forged with Abbas, but definitely not taking in the refugees. The borders and Jerusalem are solvable, but only if Israel will be able to rest assured that its security is not jeopardized. Still, I can see the opposition making a big issue of Jerusalem, since it has the capacity to arouse strong emotions not only in Israel but in world Jewry. Still the reality is that there are Arab sections in the city and they will have to be governed by the Palestinians. It will be hard to prevent them to declare that part their capital. I can also see that Hamas will make enormous attempts to harm Israel, and at the end Israel will have to clear the Gaza strip from Hamas and hand it over either to the Palestinians or to some international authority. If an agreement will be reached Hamas will lose its support among the population. See also the very wise remarks by Tony Blair in the same spirit.
Around 113 people reportedly died in shipwrecks between Libya and Italy throughout weekend (Reuters)
from the article: Report: Abbas reiterates refusal to recognize Israel as 'Jewish state'