Can't you see high level diplomacy when it's at work? If Obama came to Israel and "insisted" on anything it would have been with the usual Israeli obstinance. Simply put the easiest way to get an Israeli to not want to do something is to tell him to do it. So he's gone with the "grown up" option. Pointing out in the clearest possible terms that settlements don't help peace, so it's up to you - you want peace and the continual support of the US well then you know what you need to do. In his heads there is a time frame, you have received fair warning. Lets see what his next speech in a year will be. It's kind of up to you.
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Alleged assailant behind officer's stabbing in north to remain in custody for 4 more days (Haaretz)
from the article: Obama: Israeli settlements hinder chance of deal with Palestinians