Hi orda,
I see resolving this question as the Israeli interest as well. Even if some Non-Israeli Jews and Israelis, who think only in terms of maximising geography and minimising competing Palestinian rights, think otherwise!
People like Netanyahu only wish to keep the fruitless dialogue going. And that is no solution. It is a festering sore which harms everyone.
Obama seems to believe in goodwill and sincerity. But that isn't going to be the basis for a solution here. Rules need to be written and a short-term timeline needs to be established.