It is not up to the President of the US to decide whether the Palestinians are allowed to have a state. The UN General Assembly voted and decided that last year. It declared by a very very very large margin that Palestine is a non-member state. An illegally occupied non-member state.
UN: Gaza could be 'uninhabitable' by 2020 if trends continue (AP)
from the article: Obama’s package deal: Nuke-free Iran for Palestinian state