The flip side of that is that half the borders are still arbitrary lines on a map, and the Pali territory would not be a part of another state, which is a different situation than 1967. The Jordanian government really isn't that keen on getting the West Bank back, since the Palestinian population has historically been a huge destabilizing force there (The Jordanian purge of their troublemakers is where the term 'Black September' came from) and aren't interested at all in taking on Israel again. They weren't ever all that keen on the idea after '48, for that matter. From their point of view though, it's undoubtedly still preferable to have it as independent Pali territory than to have it as an Israeli-occupied territory.
But ultimately Obama isn't in any position whatsoever to dictate to the Israelis on this, it will all depend on what's acceptable or unacceptable to them.
Rush was talking about this while I was out at lunch today, FWIW, and saying that the Israelis were considering going forward with something similar to the hotair report, the question now will be whether they think Obama's speech is an entryway to discussing that, or an attempt to paint them into a corner on it that they will have to now walk away from so as not to look like his patsy.
