Removal of settlements not the cessation of building in these illegal establishments is the issue. There is NO state of Palestine if the settlements remain. There is no Palestine without Gaza AND clear borders (read UN agreements from 1948) for both Israel and Palestine. That Netanyahu diverts and Obama pleads Israel's good faith reveals Palestine has no chance for a state with these two in the drivers' seats. Abbas is not even in the car. He is hanging on in a second hand trailer behind the car.
Firebomb thrown during demonstration in northern Israeli town of Umm al Fahm (Haaretz)
from the article: Israel and Palestinians clash over agenda for direct peace talks