I thought that Mohammed Abbas would give the serious and generous (in my view, a bit too generous) proposal some thought, maybe at least 24 hours of thought. But, as it turns out, the Palestinian leadership is in no mood for, well, leadership and is afraid to work towards a reasonable settlement. Alas, Abbas has said "no" to Ehud Olmert, an unambiguous "no," as this follow-up story by Aluf Benn in Ha'aretz makes clear.
Abbas might have said that he'd be open to further negotiations. But he didn't. He's afraid of Hamas and afraid of his own shadow. If you can't seize the moment you lose control of history.