The AP says "Palestinians soften bargaining positions", but did they really? The supposed concessions are:

1) accepting Israeli sovereignty of the Western Wall and the Jewish Quarter of the Old City. According to Shlomo Ben-Ami, they accepted this at Camp David. The PA later denied making the concession (cf. an article at MEMRI)

2) not explicitly demanding settling 4 million descendents of 1948 Palestinian refugees into Israel, but merely mentioning UN resolution 194, which Arabs have traditionally interpreted as meaning the same thing