Only in Abbas mind is it a "fair" deal though. He wants no settlements, and he refuses to negotiate until Israel bows to his whim. He is absolutely holding peace talks hostage in order to ensure something he wants to happen to happen. He can't simply go to negotiations and peace talks and express his views there. What if Israel said they won't have peace talks until Hamas no longer rules Gaza?
ok. Seriously, though, this is not really what he is after. Like this entire process all along, Abbas is trying to use political realities to his advantage. In particular, Abbas knows that a settlment freeze, particularly an open ended one, would play havok with Netanyahu's coalition, and Abbas hopes to force it into a position where it is forced to either concede and have its government fall (which Abbas knows it is unlikely to do) or refuse.
Abbas wants refusal, but not for refusal's sake. Following Arafat before him, the objective is to get Israel to do something that OBAMA does not want it to do. If Abbas can bring Obama on board and Israel refuses, Abbas can put some daylight between the US and Israel, while at the same time using the Palestinian propaganda machine (with a decent representation on this forum, of course), to continue to paint Israel as the rejectionist.
And this all goes towards the overall Palestinian goal, which has not changed and has not really been relinquished - the total desctruction of Israel and its replacement with a single Palestinian state. As silly as this is, and as remote a chance as they have, the Palestinians cling to it because it is the essence of Palestinian identity. the Palestinians are very much an "anti-people", with a national and political identity borne not out of common history but in response to the history of another. Borne not to create something better but to deny the rights claimed by others. And the denial of Jewish claims to Israel, and Jewish normalcy in Israsel, is and always has been the core of the Palestinia political identity.
So the Palestinians, while they will engage in talks and bank concessions and sign agreements, will never do anything that they view to permanently diminish their ability to continue pursuing their desrructionist goal. Sure they will enter negotiations. Up until recently they utterly refused to move "refugees" into newly built communities, because that would undermine the "right of return" BS line they used so effectively to refuse any settlement (now they feel that demonstrating their capacity to giovenr is more important, now that they feel they are closer to being able to manipulate the west into forcing "peace" on Israel). The Palestinians have never conceded anything, never given up anything, never aknowledged anything that is against their interests. They have continuously worked to instill the basic core of the Palestinian identity (rejectionism of Israel) into the next generation, at the direct expense of this population, because the Goal is more important than anything else, including the well being of the people.
Now all this is a bit of a digression. Abbas does not want to hold talks hostage. He wants Israel to tell him off, and he wants for this to cause friction between Israel and the rest of the world. Because his goal is to weaken Israsel to the point where no one will come to Israel's defence the next time it is attacked by Arab armies. I think his ultimate goal is a "peace" imposed from the outside that will give the Palestinians territory and independence, but will not force an end of conflict or require the Palestinians to relinquish the goal that is the core of their collective identity.