* Talks stave off debilitating Israeli, American sanctions
* Abbas sets aside option of statehood bid through U.N.
* In officialdom and on the street, few trust in dialogue
By Ali Sawafta and Noah Browning
RAMALLAH, West Bank, Aug 15 (Reuters) - In the three years since Israelis and Palestinians last tried and failed to negotiate an agreement on dividing the land they live on, ...