Yes, Obama laid out what Israel needs to do. But he focused too much on the settlements and the occupation. While the settlements cause a problem, they are not THE problem. You remove the settlements and there will still be problems with the Palestinians. The biggest problem that Obama did not mention was the culture of hate. The Palestinian culture preaches hatred towards the Jews from day 1. The schools, media, and social life are filled with anti-semitic and anti-zionist spewing rhetoric. Don't forget the Hamas and other Islamic militant stance. Why should they care for a sheet of paper when Allah dictates that Jews and other infidels are inferior who must be conquered? What good is a peace treaty to them? Basically all Obama said was remove the settlements, security fence, get the troops out of the West Bank and then hope that in 2-3 generations the Palestinian side will be open to co-existing with Israel. Not a safe gamble IMO.
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