I had read the op-ed piece when it came out, and was reminded of it again when Shlomo Avineri wrote a critical op-ed piece about it in yesterday's Ha'aretz (here in English or Hebrew). Here is his final paragraph, which I agree with:
"The initiative should not be ignored, because it includes an Arab declaration of willingness for peace, but its meaning should not be mistaken. At this stage it is not calling for negotiations, but rather unconditional acceptance of the Arab position, and that is also its main stumbling block."
This reminded me of the discussion I've been having over at Gert's blog surrounding a recent interview Ken Livingstone, the former mayor of London, conducted with Khaled Meshal in The New Statesman. Hamas's stance towards peace negotiations with Israel is strikingly similar, if not absolutely identical, to the one Al-Faisal presents in his op-ed as Saudi Arabia's position, and indeed the whole Arab League's. First, leave all territories captured in 1967, including East Jerusalem, and only then will we talk about peace. So, Hamas and Saudi Arabia have the same basic ideas about peace with Israel, yet the former is considered radical and the latter is considered moderate?
Hamas and the rest of the Arab world have to understand that withdrawal and the creation of a Palestinian state is the final step of the peace process. There can be no further claims after this.