Clinton tried to give them everything, and Arafat refused. Clinton was sad. War is hell said Sherman, a hero of our Civil War. Plus they voted Hamas in power, so sympathy for them is limited.
Arafat was never serious about peace. He had to go along with the charade to give his side the time they needed to rearm and attack Israel with the ultimate aim of conquering the whole country.
I guess Bill Clinton was naive because he's a Democrat. But now he has learned the hard way and a two state solution is not possible because the Arab Muslims are not interested in it.