Nuttiest Coverage of Obama's Speech So Far (UPDATED)

The winner, by a mile: The Associated Press:

Obama says Palestine must be based in 1967 borders
(AP) - 2 hours ago
WASHINGTON (AP) -- President Barack Obama is endorsing the Palestinians' demand for their future state to be based on the borders that existed before the 1967 Middle East war, in a move that will likely infuriate Israel. Israel says the borders of a Palestinian state have to be determined through negotiations.
In a speech outlining U.S. policy in the Middle East and North Africa, Obama on Thursday sided with the Palestinians' opening position a day ahead of a visit to Washington by Israeli Prime Minister Benjamin Netanyahu. Netanyahu is vehemently opposed to referring to the 1967 borders.
Until Thursday, the U.S. position had been that the Palestinian goal of a state based on the 1967 borders, with agreed land swaps, should be reconciled with Israel's desire for a secure Jewish state through negotiations.

Charles Johnson explains why this report was filed from an alternate universe.

UPDATE: The Anti-Defamation League, one of Israel's most stalwart supporters on the planet, just issued this statement praising President Obama:

 We welcome President Obama's compelling speech on the priorities for American policy in the Middle East.  We applaud his strong outlining of the principles which motivate that policy, including supporting the universal rights of free speech, equality and religious freedom, opposing the use of force and political repression, and promoting political and economic reforms.  These are a reflection of American values and promote American interests.

            We further commend his strong affirmation of the importance of the deep and unshakeable U.S.-Israel relationship, and his clear articulation of the moral and strategic connections between America and Israel.  We support the President's vision of a negotiated Israeli-Palestinian settlement with strong security provisions for Israel, and a non-militarized Palestinian state.  We appreciate his direct rejection of a unilateral declaration of a Palestinian state and his understanding that the Hamas-Fatah agreement poses major problems for Israel.

            The Palestinians must heed the President's warnings about imprudent and self-defeating actions, including through campaigns to delegitimize Israel, plans to unilaterally declare statehood, and a unity agreement with a Hamas which remains committed to violence, rejection and anti-Semitism.
            This Administration has come a long way in two years in terms of understanding of the nuances involved in bringing about Israeli-Palestinian peace and a better understanding of the realities and challenges confronting Israel.