I think the straw that broke the camels back was Annapolis for the Palestinians. They negotiated without preconditions and almost had a peace deal when Olmert was prime minister but when the Netanayhu government came in after Annapolis the new government of Netanayhu didnt want to honor the agreements made at Annapolis and it made Israel look dishonest. Since then I notice Palestine has toughened their approach. They keep on saying they want to start from where Annapolis left off. Netanyahu says Israel wants to start fresh talks from scratch. I think it angered the Palestinians. Annapolis was a bad idea.