Every couple of years, a much-ballyhooed new initiative has surfaced to solve the Israel-Arab problem. Will anyone remember the current "Saudi initiative" 40 or even five years from now? Not unless the Saudis are willing to go a lot further toward meeting minimal Israeli conditions for a peace agreement.
There is no way that even the most dovish Israeli government can agree either to return all the way to the pre-1967 borders or to accept a massive influx of the descendants of the 1948 refugees.
And because the Saudis know this, they also know that their initiative in its current form is no more than a propaganda ploy. This is not to say that the Saudis would not like to see Israel at peace with the Arab world as part of their efforts to contain the spread of Iranian and Sunni jihadist influence. They are simply not, so far, willing to take any real risks to do so.
(New York Sun)
[I]t is difficult to understand why Rice has seen fit to spend so much political capital in wartime on a diplomatic initiative with so little likelihood of success. If the Saudis want to be taken seriously as peacemakers, they need to stop issuing ultimatums to Israel and start issuing them to the Palestinian irredentists they continue to lavish money on.