Palestinians have NEVER kept a truce. Not a good track record for negotiating on. I understand their anger and hardships. There was a really good movie I saw within the last year made from the Palestinian point of view. Quite moving. Yet, they have to only point their fingers at their own so-called leaders, who have always been a bunch of greedy, selfish, terrorist thugs just as intent on killing their opponents as on freedom for their people. How many billions was it estimated Arafat's wife has?
And as far as a Palestinian state, there has never BEEN a Palestinian state. They're all displaced Arabs from countries around the area who were not only displaced by Israel, but also by their neighbors: Syria, Jordan. That part of the world has always been under the rule of someone else. So when they talk about their "homeland" they never had one and they're asking to be giving part of Israel's, which has a claim going back a whole lot further than any groups now in existence. These people were largely living at peace with Israelis within Israel (or the Palestine mandate under Great Britain as it was until independence) until their Arab "brethren" stirred the pot for their own selfish aims. It was largely their wars that displaced all these people, not the Israelis. It's only recently that Israeli settlers have been causing the problems.
Kind of my rant about the imbecility of diplomacy when history isn't accounted for. I have nothing against Palestinians -- I once had a friend who's one. But frankly, they ought to be negotiating with the neighboring Arab states as well. They're the ones that screwed them over the worst.