If you believe that Fatah is a suitable partner for peace, then it makes sense what the Knesset is currently trying to do. Plead with Fatah to negotiate and pressure them to not go unilateral at the United Nations. If you believe that Fatah is just in a mood and are behaving naughty, yet they can return from their current ways of trying to join Hamas into the Palestinian Authority, then current foreign policy may be justifiable. If you believe that sooner or later Fatah will come to their senses and be reasoned with, then the debate between PM Netanyahu and President Obama becomes understandable.
Problem: What if Fatah is irredeemably passive toward terror?
This is important. Unless Fatah is trustworthy, then everything we are hearing from every government in the world that discusses this is currently a misdirection. A discussion of the wrong topic entirely, not a true path to peace.
If you believe that Fatah is not a true partner in peace, has not been a true partner in peace for a long time, and or that Fatah never was a true partner for peace, then you are frustrated with the political theater at play and are perhaps ready to consider an alternative, such as the Everyone Wins Peace Plan. The Everyone Wins Peace Plan calls for the removal of the Palestinian Authority from the peace process and the gradual naturalization of all West Bank and Gaza Arabs who eternally foreswear terrorism.
If the moderate Fatah are not even potential partners for peace at some distant date in the future due to systemic corruption beyond hope of repair, then the question would no longer be 'How much to give to the Palestinian Authority?' Indeed, what can possibly be given to the Palestinian Authority with the dismal content and record of their leadership? Not even Gaza alone can be given to the Palestinian Authority.
The question we face is, is the embrace of Hamas only a current policy of Fatah, or revelation of their true character?
Liberty for the Palestinian Arab can only come once they abandon, and are enabled to abandon, the failed leadership that abandoned them long ago. For with the establishment of a faulty electoral system that allows votes for terror to count, a false veneer of legitimacy has been given to the Palestinian Authority when they are in fact rebels against their benefactors' investments and violators of their constituencies' trust and the main cause for strife in the Holy Land today.