I wouldn't agree with a great deal of what Nadir Q says, but he does make an important point.
Focusing too much on the role of Abbas implies that the success of the peace process depends on having the right leadership in Palestine -- which it does. But it also depends on having the right leadership in Israel.
Forgetting about intra-Palestinian politics for the moment, I think it's pretty clear that there won't be any progress as long as Yisrael Beitenu forms part of the ruling coalition in Israel.
If Obama doesn't want to spend political capital unnecessarily, I think the right way for him to approach the Israeli-Palestinian peace process is by giving it a very low priority for the time being. Nothing positive is going to happen as long as Netanyahu's government is in power, regardless of who leads the Palestinian Authority. If Obama doesn't recognize this, he's in danger of setting up the perception a few years down the road that the US has somehow "failed" to achieve peace in the Middle East.
Sometimes the smartest approach is not to try.
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