Perhaps you are unaware of the constant colony building under Barak, despite his solemn assurances to halt their construction? People who do that have trouble creating trust. Yassir Arafat was just as bad by not doing enough to stop Hamas blowing up Israelis during the Oslo Accords.
Barak did offer to return most of the land seized in 1967, but none seized of that seized in 1948. Yassir Arafat accepted that, but then demanded of Barak that Israel implement UN Resolution 194, otherwise known as the "right of return".
"refugees wishing to return to their homes and live at peace with their neighbors should be permitted to do so at the earliest practicable date, and that compensation should be paid for the property of those choosing not to return and for loss of or damage to property which, under principles of international law or in equity, should be made good by the Governments or authorities responsible"http://domino.un.org/UNISPAL.NSF/a06f2943c226015c85256c40005d359c/c758572b78d1cd0085256bcf0077e51a!OpenDocumentYassir Arafat's demand was correct, fair, legal and all that, but bloody stupid and politically impossible for Barak to deliver in full. I was so pissed off. I bet Bill Clinton was too.
Ehud Barak lost the election, and Likudniks have ruled Israel ever since. Netanyahu and Ariel Sharon have followed a policy of oppression, colonization and terror. I'm sure I don't need to document this.
Yassir Arafat realized his mistake when the world lost interest in his people's plight, and has since offered (again and again) to accept the Oslo Accords agreement for a state in part of the West Bank and Gaza. The Likud Party wants that land as part of their demented vision of "Greater Israel", and is prepared to offer only waterless ghettos behind razor wire, watched over by snipers and divided by Jewish-only roads.
The Apartheid Wall may serve to keep suicide bombers out in the short term, but by increasing the rage and despair of the Palestinians it guarantees the conflict will internationalize and continue. Unable to get at Israelis in Israel, they will attack Israelis and Jews worldwide, like the way the Armenian Secret Army hunted Turks. This will continue forever, to the benefit of extremists on both sides.
The Left, if it ever returns to power, should repeat the Oslo offer. If that is not possible (because of the settlements built by the Right throughout the OT), a gradual transfer of Palestinians into Israeli society will be the only option left for avoiding eternal war. The Palestinian Diaspora are not going to curl up and die any more than the Jews did.
Peace is a lot more difficult now - the hatred built up by generations of oppression and massacres (by both sides, but mostly by Israel) will take a long time to defuse. Yassir Arafat has called many times for international peacekeepers, and I think that will be part of any eventual peace plan - just like the peace pact with Egypt.
Peace, or something sufficiently like it, is always possible. Both sides will have to compromise. The cyclical nature of conflict escalation has put the extremists on both sides in the drivers seat, but I hope that will come to an end before too much damage is done, to the Palestinians, to Israel, to world peace and stability and to Israel's allies. Israel/Palestine is too important to too many religions to be allowed to fester indefinitely. Well, that's my opinion anyway. Flame away.