Real hope in Palestine?

First it seemed like there is finally real hope for the Palestinians, in their attempts to gain an independent state. The Finnish national newspaper Helsingin Sanomat reported in a rather small article about this headlining "Netanjahu agreed to a Palestinian state with strickt conditions" (Helsingin Sanomat 15.6.2009). First this seemed like fantastic news indeed.

Reading the article further revealed fast that these strickt conditions are actually practically impossible, or extremely unfavorable for the Palestinians to say the least. First, the Palestinians do get an independent state, but this state is not allowed to have an army. Could this really be a realistic option for Palestine? Residing next to one of the strongest military forces in the world with out having own armed forces puts one in a rather volnurable position. To invest this trust in the Israelians would be a sign of great forgiveness.

Another condition is more a political one, forcing the Palestinians to acknowledge Israel as a Jewish state. Some Palestinian politicians claim that acknowledging Israel as a Jewish state would compromise the position of the Arabic minority living in Israel.

And further, condition is that Jerusalem will remain fully Israelian. It might seem as a decent condition, but it involves a significant problem, namely that it hinders those Palestinians to return to their homes, who had to flee when the Israelian state was established. Netanjahu also continues to support the expansion of Israelian colonies.

My question is, was this long expected concession actually a realistic move at all? I remain curious.