From far away it looks like this: The Arab league says they will never recognize Israel as a Jewish State. They are not interested in what the U.N., Arafat, or anyone else has/had to say. The Palestinian leadership (s) have passed over several opportunities for peaceful co-existence and there are indications that annihilation is still the objective. If 6.5 so called "refugees" move in, that should do it. There is significant doubt that Abbas has enough influence to execute any agreement. Haven't you noticed that the people in Gaza don't recognize Israel as an entity and are dedicated to erasing whatever it is? Demonizing Israel is the worst strategy for establishing stability. It may seem unfair but it's almost entirely up to the Palestinians to prove that peace and prosperity are their goal.
Two Turkish soldiers, five Kurdish militants killed in attack (Reuters)
from the article: What Israeli Palestinian mutual recognition really means