Background: Israel basically has given up on Palestinians ever being able to agree to a negotiated peace. (They have rejected every offer, and can't even manage to agree among themself to hold elections, never mind a peace treaty.)

The plan Ehud Barak (and many others) is proposing is effectively a unilateral peace agreement.

Israel is saying: This is your county, and these are it's borders. We will keep our military in place until you agree to a peace treaty, but otherwise encourage Israeli's to move out, and we will treat the area as if it were a country. They are also proposing economic plans to improve their country to try to encourage them to embrace peace.

I doubt Palestinians will like it - they are getting everything they could expect, but not everything they want. (And after this they never will.)

But it's the best thing for Israel, and despite them not liking it, it's also the best thing for Palestinians, and I hope Israel does it.