Israel was pretty clear about what they wanted, and that was not a real, self-sufficient Palestinian state.
And the PLO was established with the aim of eliminating the state of Israel. Times change. I think Arafat and Rabin were serious at the time, but there was simply too much of a gap to bridge. Since then it's only gotten worse. Yes, Israel funded Hamas, but at the time they were more concerned about the violence of the PLO. I don't believe the intent was to create a more dangerous enemy as a pretext for war as some are suggesting now, however it was stupid and short-sighted, and blowback is a much more widely recognized phenomenon today than it was then.
And the PLO was established with the aim of eliminating the state of Israel. Times change. I think Arafat and Rabin were serious at the time, but there was simply too much of a gap to bridge. Since then it's only gotten worse. Yes, Israel funded Hamas, but at the time they were more concerned about the violence of the PLO. I don't believe the intent was to create a more dangerous enemy as a pretext for war as some are suggesting now, however it was stupid and short-sighted, and blowback is a much more widely recognized phenomenon today than it was then.