I think a sizeable minority of Israelis would prefer a zero state solution - expulsion of all the Palestinians. Their leadership isn't willing to go there right now, but in the context of a major regional war in which nukes were used, expulsion would be small beer and easily doable.

Obama doesn't cave on Obamacare, because that is his monument, and an expensive political investment that will pay dividends of political power for the leftists for a very long time. After initial losses in 2010, it will pay great rewards later. But Palestine, Afghanistan, Iran, Israel, etc.. Obama could care less. And why should he? There are no political dividends to be paid from those places. No votes that he can count. If he can't get credit for being a big peacemaker, he might as well keep those places out of the news as much as possible.