So close and yet so far. They were very close so many times in the past, including 2008.
The first few paragraphs of the linked article are somewhat misleading, but here is the substance, transcribed from a video and cited in the article:
Abbas marked the settlement blocks that Israel would retain: The Ariel bloc, the Jerusalem-Maaleh Adumim bloc (including E1), and Gush Etzion. A total of 6.3% of the West Bank. Then Abbas also drew the territories that Israel proposed to offer in their place: In the area of Afula-Tirat Zvi, in the Lachish area, the area close to Har Adar, and in the Judean desert and the Gaza envelope. A total of 5.8% of the West Bank. Abu Mazen wrote on the left side of the letterhead the numbers as he incorrectly remembered them (6.8% and 5.5%), and on the back he wrote the rest of the details of the proposal: Safe passage between Gaza and the West Bank via a tunnel, the pentilateral committee to administer the Holy Basin, the removal of the Israeli presence in the Jordan Valley and the absorption of 5,000 Palestinian refugees, 1,000 each year over five years, inside the Green Line.
Abbas’ hand-drawn map, sketched on the stationery of the Palestinian Office of the President and obtained by TheTower.org in the course of this investigative report about the clandestine negotiation between Olmert and Abbas, was published here yesterday exclusively. The two men met 36 times, mostly in Jerusalem and once in Jericho, and arrived at a formula that was to be the basis for a lasting agreement between the two parties. But in the end, peace accords between Israel and the Palestinians were not signed, despite the far-reaching proposal made by Olmert. ...
Olmert, who talked today about his proposal to Abu Mazen, offered the 1967 borders, but said: “We will take 6.5% of the West Bank, and give in return 5.8% from the 1948 lands, and the 0.7% will constitute the safe passage [EE: a corridor between the West Bank and Gaza], and East Jerusalem will be the capital, but there is a problem with the Haram and with what they called the Holy Basin.” Abu Mazen too answered with defiance, saying: “I am not in a marketplace or a bazaar. I came to demarcate the borders of Palestine – the June 4, 1967 borders – without detracting a single inch, and without detracting a single stone from Jerusalem, or from the holy Christian and Muslim places. This is why the Palestinian negotiators did not sign.
And of course there is that sticky little matter of agreeing that Israel has a right to exist.