I'm very much opposed to the Israeli policies towards the Palestinians. However, Obama should not be making public and insulting demands of what Israel should or shouldn't do. Rather, he should apply pressure behind the scenes. Obviously Obama is shooting his mouth off because the issue of the Palestinians doesn't matter very much to him. But, because he lost face, he has to be insulting towards Israel. And since, the US government sends Israel about 4 billion dollars each year in aid and since Israel does not want the US getting into bed with the Palestinians, the Israeli leadership has to except it. Of course, the Israeli leadership realizes Obama's words are just empty demands and that it won't effect policy.
Law expanding definition of terrorist activity passes first Knesset reading (Haaretz)
from the article: ADL chief: Flawed U.S. policy is undermining Mideast peace