Recent proposals
"Some Israeli analysts, however, say the airstrike, other recent military successes against Hamas and the reoccupation itself have helped restore Palestinian respect for Israeli power. That, they argue, could evoke more conciliatory and creative Palestinian approaches that may spur the diplomatic process forward".

I don't think we're quite there yet. According to the article, what Abdel Razek Yehiye (PA interior minister) is suggesting is just a return to the situation before September 2000. This is not good enough.

Peres says withdrawal in order for voting to take place in which Arafat will be neutralized -- I'll believe it when I see it.

We're told about discussions between former Shin Bet chief Ami Ayalon and Sari Nusseiba - neither have any official or popular power (I think Ami Ayalon is popular, but I doubt if he can gather a large following at the moment for negotiations).

And this is interesting: "(Salam) Fayed (new PA finance minister) proposes a 100-day plan for thorough reform of P.A. financial practices. To create absolute transparency, he is proposing that all Palestinian funding go through just one bank, and that he sign all checks personally." This guy is regarded by the US as the new wunderkind.