Israeli-Syrian peace negotiations?

The Israel-based newspaper, Haaretz, is reporting that the Israelis and the Syrians held secret peace negotiations between 2004 and 2006:

In a series of secret meetings in Europe between September 2004 and July 2006, Syrians and Israelis formulated understandings for a peace agreement between Israel and Syria.

The main points of the understandings are as follows:

An agreement of principles will be signed between the two countries, and following the fulfillment of all commitments, a peace agreement will be signed.

As part of the agreement on principles, Israel will withdraw from the Golan Heights to the lines of 4 June, 1967. The timetable for the withdrawal remained open: Syria demanded the pullout be carried out over a five-year period, while Israel asked for the withdrawal to be spread out over 15 years.

At the buffer zone, along Lake Kinneret, a park will be set up for joint use by Israelis and Syrians. The park will cover a significant portion of the Golan Heights. Israelis will be free to access the park and their presence will not be dependent on Syrian approval.

Israel will retain control over the use of the waters of the Jordan River and Lake Kinneret.

The border area will be demilitarized along a 1:4 ratio (in terms of territory) in Israel's favor.

According to the terms, Syria will also agree to end its support for Hezbollah and Hamas and will distance itself from Iran.

Both Israel and Syria deny the report, but what would you expect them to do?

I have no idea whether it is true or not, but I am also hearing rumors that Bush nixed the deal because he didn't believe in negotiating with enemies.