The impression I had was that Bush is settling for leaving the Palestinians with a reduced area under their own control than before, letting Israel keep more power of the area. But as you say, it is very hard to tell with it.
That there would be no separate Palestinian state or, at least, that there would be no talk of a Palestinian state until they met many more conditions. As I said though I could have be wrong on that.
Excalibur
Aviendha's Englishman