On the other hand, it's difficult to negotiate with someone who doesn't think your state's existence is legitimate in the first place:
To mark sixty years since the United Nations plan for the partition of Palestine, Palestinian militant Islamic movement Hamas called Thursday for the UN to rescind the decision which led to the establishment of the State Israel, Army Radio reported.
"It is not shameful to correct a mistake. Palestine is Arab-Islamic land from the river to the sea, including Jerusalem, and Jews have no place there," the radio quoted a Hamas statement as saying.
Interesting phrasing. Jews have no place there. I'll keep that in mind.
In the same article, right-wing Israeli cabinet member Avignor Lieberman renewed his call for a land-swap to create a two-state solution. Lieberman still advocates a "transfer" of Israeli-Arab citizens (whether all, or just the one's near the border whose towns could easily be included in a land-swap, is unclear), which is pretty loathsome in its own right. But at least he concedes that there has to be a Palestinian state in the area -- that they do have a "place" between the Jordan and the Mediterranean.