Obama squeezed out of Netanyahu support for a two-state solution, and could have made do with that as the basis for a diplomatic process.
But he converted the freezing of settlements into a matter of honor, and every American concession, even over a building frame, will be interpreted as the president giving in. When the argument is about who is stronger, not an issue’s substance, whoever calls on Netanyahu to give in to Obama will be accused of not being a patriot. And the Israeli left does not want to find itself in that situation.
[ The whole article is very much worth reading – a thorough analysis of why there’s so little demand for settlement freeze from Israeli left, though the author ignores the real left (the “far” left), which is calling for a freeze, but is quite small.]