Arafat got at least two offers for a Palestinian state (at Camp David and once later), with about 91% of the West Bank iirc.
The later offer was when Barak needed Arafat's support of a peace agreement before an election (so the Palestinian side had a good negotiating position).
Arafat didn't accept either -- which was one thing. But there was no counter offer like "Give us XX and YY and customs advantages ZZ and ...". Instead Arafat started a terror campaign.
But there is no blame for all that refusal to even give a counter proposal; it is all a big Israeli conspiracy.
(Seriously, I feel a bit sick when I chat with hateful people.)