Two states living alongside each other in peace?

That's the alleged desired outcome of peace negotiations between Israel and the Palestinians. There are some problems with this though: first Hamas are on record (see many of my previous posts) wanting to destroy Israel & all Jews and second Fatah say that they won't allow any Jews onto post independence Palestinian land whilst also stating that:
'The right of return will remain sacred for every Palestinian...The Palestinians won’t succumb to extortion; either we get the home and land peacefully, or we will make sacrifices until we return.' (per statement from the Fatah leadership, 5/14/2011).

So what's in it for Israel to talk peace with Hamas or Fatah?