So Obama is recycling the Saudi initiative back in 2002 which the US and Israel immediately rejected back then.
Anyhow it seems like the US is finally coming round to what the rest of the world has been saying fo decades which is no peace without a return to the 1967 borders with mutually agreeable land swaps. I'm not sure how it will be implemented though. Too many settlements in the West Bank to many Israelis West Bank is part of biblical Israel (Judea and Samaria). To complicate matters futher the Israeli lobby is very powerful in the US and a very large part of the US population take the Bible literally so need Israel to exist in it's biblical form in order for the rapture to take place.
Both sides will have to make great sacrifices. Israel will surely have to give up many of the settlements in the West Bank and the Palestinians will have to forgo the right of return to Israel proper.
The thing is though according to leaked documents courtesy of Wikileaks and AL-Jezeera, just a few years ago the PLO made very serious concessions in secret that would've given Israel more than there fair share. But it was rejected because it did not include some of the settlements in the West Bank.
Also wonder where the Golan Heights fit into this.
