Obama is trying to help the Palestinians, even if he is not acting too strongly yet, perhaps because of the coming US elections. Instead of causing more trouble for Obama, and instead of having him make unprecedented concessions to Israel now, the Arabs should offer Obama that they will continue direct negotiations for 3 (not only 2) months, in return for a fraction of what he was willing to pay Israel to do for a 2 months extension: A little more financial support to build their state, not pressuring them to agree to another extension, and not vetoing any Security Council decision that is in their favor in the coming year, including admittance of an independent Palestinian state to the UN. If in 3 months Israel and the PA agree on the final borders, settlements can resume in the Israeli section. Such an offer by the PA will show Israelis how terribly foolish was Netanyahu in not grabbing the US offer; not only did Israel lose great benefits because of the settlements, but the Palestinians also gained a great deal.
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from the article: Diplomats: Arabs want return to indirect Mideast talks