| Now, the Saudis have said that they will (cough, cough, sort of) recognize Israel if it withdraws to the 1967 borders.|
For several decades, Saudi Arabia has explicitly said they would give Israel full recognition if it obeys international law (UN 242). In fact, Saudi Arabia led an initiative in this regard over 20 years ago, the Fahd Peace Plan of 1981. Israel responded by calling it a "peace offensive" and by sending fighter jets over Saudi oil fields.
but of course, if they had agreed to this after 1967, when Israel did offer the territories back and got the three noes of Khartoum Conference -- no peace. no recognition. no negotiation -- this could have been settled long since.
Israel has never offered the territories back. It is Israel's insistence on keeping the West Bank and Jerusalem that has been the source of conflict for the past 3 decades. Regarding Khartoum:
Odd Bull was the Chief of Staff of UN forces in the Middle East. At the end of his tenure, he was "lavished with praise by Israelis for his impartiality". "He suggests that it was Israel's openly avowed determination to annex the conquered territories that accounted for the rhetorical excesses at Khartoum." *
Note also that the Khartoum declarations did not seem to faze Israel in 1977, when it negotiated a peace with Egypt, after rejecting the identical peace offer in 1971. What happened between 1971 and 1977? The 1973 war, which demonstrated Egypt to be a potent military force.
* ( Image and Reality p. 152 )