"Israel has offered to negotiate for a two-state solution several times over the years, and the Arabs who have called themselves Palestinians since 1965 have always walked away"
Yes, because Israel has always denied them the right to return to the homes and land they were forcefully expelled from during the Nakba.
Imagine if someone forcefully kicked you out of your home and off the land you had been farming for generations and forced you into a large outdoor prison facility which they controlled access to and ran.
Then, they offer you the 'peace deal of a lifetime': Their guards will leave the prison and allow you to run it, but you have to sign a document relinquishing all claims to the land and home you were forced off of in perpetuity.
What a great deal! I'm sure you would be jumping for joy at that offer (not).
The Palestinians reject these so-called 'peace deals' because they (correctly) view them as devious ploys to kill any last vestiges of hope they have have of being able to someday return to the homes from which they were forcefully displaced by Israel.
When pro-Zionist apologists rant about how Palestinians reject so-called peace deals, what they're really pointing out is all the times Israel refused them any concessions on 'right to return'. So really I think Israel is also guilty of being stubborn and calcitrant in these negotiations.