Olmert is negotiating with himself ...

you can only lose doing that. It is amazing but the leaders of Israel have never learned the most fundamental tactic of negotiation, never negotiate against yourself (just google never negotiate against yourself and you will see what I mean). When you negotiate against yourself you put yourself in a weak position and make concessions without getting anything in return. Olmert's speech today was a classic case of this. He made all kinds of concessions getting nothing in return. Olmert's concession today are now the starting point for any negotiation where Olmert will have to make more concessions.