Can a new Middle East plan succeed?

It seems Israel and USA consider the agreement between Hamas and Fatah to form a unity government as an internal matter. According to Israeli PM Olmert, he and US President George Bush agreed to boycott a new Palestinian unity government unless it recognises Israel, This will have little effect on redressing the situation in Palestinian territories as the sanctions will continue. As the Palestinians made an effort to end internal strife among them, USA in particular should show a good gesture towards the Palestinian authority by offering it help. It shouldn't use Hamas as a pretext to withhold it as Hamas no longer holds key ministries.

Hamas should act reasonably in its attitude towards Israel. It should have learnt from its difficulties in running Palestinian affairs internally and internationally that it can't continue going against international agreements stipulating the rights of Israel to exist. It should seize this chance of reviving the Middle East process to give it a new life and not to be the cause of making it dead from the start. All parties should show flexibility to give peace a chance under mutual recognition.