While a “reasonable compromise” can be forged in theory between two nations determined to live in peace with each other once a border is devised, it is not possible in the absence of such recognition.
Given the constant incitement and fomenting of hate against Israel and Jews in the official PA media (let alone that run by Hamas), it’s difficult to see how Abbas could ever agree to anything that would require a true end to the conflict rather than a mere truce. Until a sea change occurs in Palestinian culture that would change that, this won’t happen.