Moment of truth for Mahmoud Abbas and the PA?

  Saeb Erakat, Palestinian chief negotiator, wednesday at a press conference in Ramallah: 


 Palestinians may have to abandon the goal of an independent state if Israel continues to expand Jewish settlements and the United States does not stop it. It may be  time for Palestinian President Mahmoud Abbas  to "tell his people the truth, that with the continuation of settlement activities, the two-state solution is no longer an option," Erekat told a news conference.  (...) Erekat said (US Secretary of State) Clinton -- who praised as unprecedented Netanyahu's offer to temporarily limit construction in West Bank settlements to 3,000 additional housing units -- was only opening the door to more settlements in the next two years. The alternative left for Palestinians is to "refocus their attention on the one-state solution where Muslims, Christians and Jews can live as equals," Erekat said. "It is very serious. This is the moment of truth for us."

Is this a threat? Or is it genuine? In any case this language is unheard of from the mouth of the Palestinian Authority that has been  so cooperative with the US and Israel in the past.