Is there a credible alternative for the Palestinians?

Obama at AIPAC, May 2011:

"Just as the context has changed in the Middle East, so too has it been changing in the international community over the last several years. There is a reason why the Palestinians are pursuing their interests at the United Nations. They recognize that there is an impatience with the peace process – or the absence of one. Not just in the Arab World, but in Latin America, in Europe, and in Asia. That impatience is growing, and is already manifesting itself in capitols around the world.

"These are the facts. I firmly believe, and repeated on Thursday, that peace cannot be imposed on the parties to the conflict. No vote at the United Nations will ever create an independent Palestinian state. And the United States will stand up against efforts to single Israel out at the UN or in any international forum. Because Israel’s legitimacy is not a matter for debate.

"Moreover, we know that peace demands a partner – which is why I said that Israel cannot be expected to negotiate with Palestinians who do not recognize its right to exist, and we will hold the Palestinians accountable for their actions and their rhetoric.

"But the march to isolate Israel internationally – and the impulse of the Palestinians to abandon negotiations – will continue to gain momentum in the absence of a credible peace process and alternative. For us to have leverage with the Palestinians, with the Arab States, and with the international community, the basis for negotiations has to hold out the prospect of success."