of a few facts also. the '67 border is in fact an armistice, you are correct. Israels actual borders are what they declared to the UN in May of 1948. It would be generous of the Palestinians to declare their state along the armistice lines. It would be smarter to declare them as Israel was in 1948 and negotiate away to the 67 lines while securing water rights and a non aggression treaty. Jerusalem should be an international city governed by the UN.
Israeli Air Force strikes two sites in Gaza in response to rocket fire (Haaretz)
from the article: Livni to Sweden: Ditch EU plan on dividing Jerusalem