Arafat chose intifada over a settlement that would have given the Palestinian Arabs 90% of the West Bank plus Gaza and East Jerusalem. Today some Palestinian activists are asking if a future Palestine can have the 2000-offered territory after all but it was a one time offer and when you choose intifada instead...
The 1999-2000 offer did NOT include East Jerusalem. That was the objection!
The Palestinian Authority is fundamentally opposed to any peace plan that doesn't have East Jerusalem as Palestine's capital and that was something Barak wasn't budging on, even if the proposal gave the Palestinians nearly the entirety of the rest of the West Bank.