Despite the new language that Netanyahu adopted on a Palestinian state, much of the speech focused on preconditions: He repeated his red-herring demand for the Palestinians to recognize Israel as a Jewish state and said that the Palestinian state needed to be demilitarized. He also repeated other demands, including over Jerusalem and refugees. Some of these statements reflect genuine Israeli interests and concerns, but the manner in which he laid them out is out of line with his rhetoric favoring negotiations without preconditions.

Netanyahu also refused to commit to a settlement freeze. He instead said that new settlements would not be built and that new land would not be expropriated. On this point, we should recall that Israel has already repeatedly committed to a settlement freeze.

That's why I was not surprised to hear that settler leader Pinhas Wallerstein told Israel Radio that he could not have written a better speech. Nor was I surprised that Likud Knesset members told Israel Radio that Netanyahu's talk of a Palestinian state is "meaningless" because of all the conditions.

It probably was not easy for Netanyahu to utter the words "Palestinian state." His doing so should end the debate in Israel over the two-state solution. Nevertheless, the speech is disappointing. Netanyahu missed the opportunity to make a speech that would have brought Israel closer to peace.