Obama cannot confirm that letter, it was never official US policy. My opinion is Israel will keep SOME of the Settlements, but only those that are very close to the 1967 border. Settlements that penetrate deep into occupied territory, like Ariel and Maale Adumim, must be evacuated.
Ya'alon okays administrative detention of Jewish extremist suspected in church arson (Haaretz)
from the article: EU slams Israel’s decision to build new East Jerusalem housing project