The Hamas-Fatah unity deal constitutes a complete repudiation of the assumptions informing Obama's policies towards the Palestinians and Israel. Obama perceives the conflict as a direct consequence of two things: prior US administrations' refusal to "put light" between the US and Israel, and Israel's unwillingness to surrender all of the territory it took during the course of the 1967 Six Day War.
The Hamas-Fatah unity deal is indisputable proof that contrary to what Obama believes, the conflict has nothing to do with previous administrations' support for Israel or with Israel's size. It is instead entirely the consequence of the Palestinians' rejection of Israel's right to exist and their commitment to bringing about Israel's destruction.
Forcing Israel into indefensible boundaries, (which as Netanyahu explained to Obama at the White House on Friday, "were not the boundaries of peace, they were the boundaries of repeated wars because the attack on Israel was so attractive for them,"), will not advance the cause of peace. It will advance the Palestinians' goal of destroying Israel.Maybe, delusionally, Obama doesn't know that. Then again, maybe, malevolently, he does.