That was the result of the USA meddling ignorantly in the region. Arafat was an asshole ex-pat who had been living in Tunisia and slipping into obscurity at the time. The Intifada was all about raising up actual Palestinians living in the region as new leaders, so as to bypass the increasingly irrelevant PLO. Clinton stupidly resurrected Arafat's political career. My Palestinian friends at the time were groaning in frustration over the whole deal - not one of them had any respect for Arafat.
So yeah, Arafat and his murderous greedy thugs would never, ever have reached an agreement with Israel. But he's dead, and the PLO is dissolved. The P.A. is made up of Palestinians who actually live there, and under Abu Mazen (Abbas), the P.A. has since agreed to 90% of what Israel wants. Unfortunately, they are no longer dealing with Rabin, who actually wanted a peace deal, but with Netanyahu, who has nothing but disdain for the P.A., and wants to simply annex the West Bank
Both sides have been willing to reach a deal at different times. Both sides have been intractable at different times. Now both sides are pointing at the other and saying "they refuse(d) to negotiate in good faith!"
I was living over there during Rabin's presidency, and I was furious with Clinton for propping up that asshole Arafat. I interviewed some of the leaders of the Intifada, along with numerous members of Rabin's coalition. The whole cluster-fuck was completely avoidable, but Clinton took the easy road to a Presidential legacy instead of the harder road to actual peace. He fucked Israel and the Palestinians in the ass, all for the sake of a photo-op on the White House lawn.
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That Palestinians are willing to negotiate. It's just a front to the West. Different for local consumption.
The same can be said for the current gov't of Israel.
No, it cannot. Bibi has no intention of negotiating in good faith. He's a Greater Israel proponent.