Yes they had no military leverage left and decided to strike a bad deal.

Palestinians haven’t struck a deal. The second Western support for Israel collapses, the whole Apartheid will collapse. And at that point Israel will have no claim to any of the land. It all belongs to Palestinians.

Israel can do a 1948 deal right now if it wants to. Even Hamas said they are willing to accept that extremely bad deal. But they doesn’t because they are an expansionist genocidal ethnostate believing they can colonize more. So that is their gamble. And by taking that gamble, Israel still has no right to any land at this very moment.