Here are some snipits from an article in today's Jerusalem post:

According to the Palestinians, the future status of Jerusalem, the problem of the refugees and the borders of the future Palestinian state are only some of the major obstacles that have prevented progress at the negotiating table.

The real problem lies in the fact that there is no Palestinian leader today who would be able to accept anything less than what Yasser Arafat rejected at the botched Camp David summit in the summer of 2000. Then, according to Israelis who participated in the talks, Arafat was offered more than 90% of the West Bank and Gaza Strip, in addition to the Arab neighborhoods of Jerusalem.

Abbas is also seen by many Palestinians as a weak and uncharismatic leader. Even worse, he is being held responsible for the fact that the Palestinians are today more divided than ever. His failure to encourage reforms in the ruling Fatah faction and his failure to solve the crisis with Hamas have damaged his image as a strong leader.

Abbas has promised to bring any agreement he achieves with Israel to a referendum. But, given the fact that he has no control over the Gaza Strip or the refugee camps in neighboring Arab countries, it's hard to see how such a referendum could be held. Besides, there is a high probability that a majority of Palestinians would say no to a deal that does not give them 100% of their demands.

"Both Olmert and Abbas are too weak at this stage to reach an agreement," said a Palestinian newspaper editor in Ramallah. "Neither of them would be able to sell an agreement to his people." .........................
They argue that, in any case, a declaration of principles - or a "framework agreement" - would not be too bad, particularly if it includes recognition of the Palestinians' demands regarding Jerusalem, settlements, borders and refugees. Livni, Barak, Binyamin Netanyahu or whoever succeeds Olmert won't be able to ignore such an agreement, and will have to negotiate with the Palestinians on the basis of the understandings. That's perhaps why the PA leadership does not seem to be very worried about who will succeed Olmert.