Fareed notices the actual policy shift in Obama's Middle East speech:

The newsworthy, and real, shift in U.S. policy was Obama publicly condemning the Palestinian strategy to seek recognition as a state from the U.N. General Assembly in September. He also questioned the accord between Fatah and Hamas. Obama endorsed the idea of a demilitarized Palestinian state, a demand Israel has made in recent years. Instead of thanking Obama for this, Netanyahu created a public confrontation to garner applause at home.

Netanyahu's references to the "indefensible" borders of 1967 reveal him to be mired in a world that has gone away. The chief threat to Israel today is not from a Palestinian army. Israel has the region's strongest economy and military, complete with an arsenal of nuclear weapons. The chief threats to Israel are from new technologies -- rockets, biological weapons -- and demography. Its physical existence is less in doubt than its democratic existence as it continues to rule millions of Palestinians in serf-like conditions -- entitled to neither a vote nor a country.