The hidden divide between the Israeli Left and the Palestinian "moderates"

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...The concept of "two states for two peoples" has been the mantra of the Israeli "peace camp" for decades.
In what can only be considered a triumph by the leftists, this idea, which was was considered anathema to Israeli governments of both the right and the left, became mainstream Israeli policy. Even Ariel Sharon used that exact phrase in May, 2004 when unveiling the disengagement plan from Gaza (placing him far to the left of Yitzchak Rabin, who never accepted the idea of a "Palestinian state.")
Similarly, that phrase has been highlighted by both George Bush and Barack Obama.
Yet the mainstream, supposedly moderate Palestinian Arab leadership has never accepted this key concept, and has been consistently and adamantly against it. To them, the idea of even accepting the existence of a Jewish people cannot be countenanced - even in private.
Any reasonable observer can see that this is a dealbreaker. The PLO's insistence on trampling the idea of a Jewish people and a Jewish homeland means that real peace can never be achieved. They are the ones who are the true obstacle to peace, far more than anything the Israeli government has ever done. The majority of Israelis have steadily moved to the stated positions of the "peace" movement in the past two decades, while the majority of Palestinian Arabs have remained as obstinate as ever.