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Netanyahu doesn't come to the table empty-handed though and refuses to prevent the growth of Jewish settlements and will not surrender the Golan Heights amongst publicly refusing to accept the notion of two states. In this respect, Obama cannot afford to give to much away and must play a tough game. The Democrat administration may even be helping Israel in the long-term by doing so as it will force them to take actions which will appease the Arab states. Another thing which must be sorted out is the government of the Palestinian state which must provide a stable base. Again, Israel must co-operate strongly here even if this means not interfering.
One thing is for sure though. Obama must get stuck in to this problem now in order to deal with the conflict and cannot stick with the rhetoric seen on Monday. Obama gives a keynote speech in Cairo next month and it is certainly no understatement to say the world waits.