They do this only for money. Our government gives them millions to negotiate.
Arafat, you may recall never worked a day in his life yet when he died had an estate worth 800 million dollars.
If they were to REALLY create a state then they'd have to take the responsibilities they're too immature to handle.
They're just not developed yet, like the rest of the Arabic Islamic world, not ready to live in peace. They love killing others and martyring themselves. It's such a precious ethos that they love dying for it, generation after generation.