Obama's foreign policy style is much more pragmatic. I'm guessing he emphasized the pre-1967 border as the separation line between the two states because he believes that is the most realistic approach to a lasting peace. Israeli and Palestinian demands have very little overlap and the emotional level of the issue makes it nearly impossible to solve. It is obvious that neither side will be happy with any peace agreement so it must be expected that both sides sacrifice some "non-negotiable" demands for a realistic and legitimate compromise.
Both sides need to get their act together and the longer the issue is put on hold, the worse it is going to get for both states. Israel is demographic time bomb and the longer Palestinians are in their current position the more radical their "governments" will become.
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