Its a Jerusalem naighborhood thats been around for nearly 40 years and has a population of around 30,000 .. hardly what you call a settlement. Bibi hasn't ordered any new settlement construction and he has agreed to a temproy freeze on construction in Judea & Samaria so he has actually made some pretty major gestures. Jerusalem is a step to far to make gestures like that over... Obama needs to learn that Bibi has limits to concessions he can make. If Obama hadn't led Abbas to beleieve that if he wants something then he can have it we wouldn't be in this situation. Abbas would have unconditionally sat down with Bibi and talked no guarantees on what he gets out of it but they would have been talking. Thanks to Obamas policy Abbas is trying to get tough and he is demanding things Bibi cannot deliver. The problem in this case is Abbas & Obamas appeasment policies. Bibi is being made to look like the bad guy but so far he is the only one who has made any gestures Abbas refuses to talk.
Clashes between IDF and protesters in Bethlehem and East Jerusalem (Reuters)
from the article: EU, Obama: Settlement construction could threaten peace progress