Hamas is rejecting it right out, because it does basically admit territory loss.

But I think it would be pragmatic of them to accept these borders. If only Israel could honor them, Israel seems to be the one who is constantly encroaching on Palestine's borders. http://2.bp.blogspot.com/-SuWj78FOpXA/ToKyE4z3ILI/AAAAAAAAHH4/9PyFkzug8Mk/s1600/israel-palestine_map.jpg

I think this is why Palestine won't sign it, because they know they're giving up claims to certain territory if they do, and then there's also a long history of Israel not honoring border agreements. So they know it's just a stopgap to legitimize the next stage of conquest.

However at this point, I think they need to play ball a little bit. Just saying "no, we'll never work with you ever" puts both of them in a terrible position, imo. But the Palestinian leaders are probably tired of being taken for fools at this point.

Tough situation.