A week after President Barack Obama's address to the Muslim world, Netanyahu said the Palestinian state would also have to recognize Israel as the Jewish state -- essentially saying Palestinian refugees must give up the goal of returning to Israel.
What it means is that everyone gets to look good except the Palestinians, without actually accomplishing anything.
The "state" endorsed by Netanyahu has three main flaws:
1. It is demilitarized, meaning it cannot defend itself against powers willing to take advantage of it whether they be Arab, Israeli, or any other.
2. It denies East Jerusalem to the Palestinians. It is highly unlikely that the Palestinians will accept any agreement without East Jerusalem.
3. Netanyahu continues to stand by Israel's policy of settlement expansion, which is only fueling anti-Israel resentment.

Doesn't this pretty much amount to nothing? I've never heard of any big time Palestinians willing to stay out of Israel.