President Obama's speech from the State Department on Thursday in connection with the "Arab Spring" correctly and critically endorses democratic and peaceful transitions and reaffirms United States support for a secure state of Israel as part of a two-state solution.

The President also outlines his vision of the border between Israel and Palestine as a foundation of the two-state solution. The pre-1967 armistice lines with "land swaps" are the most painful and dangerous step in the land-for-peace formula.

Helpful would have been a previous visit to Israel by President Obama, as President. After all, it is the Israelis who must live within these proposed borders.

Missing context was also necessary for the speech. Repudiation of Chairman Abbas' historical revisionism in the New York Times was warranted. Palestinian and Arab violence destroyed the United Nations' vision of a two-state solution in 1947-1948. This is the origin of the "catastrophe" which befell Palestinian national aspirations.

Reminding the world that the "Obama borders" were essentially the "Clinton/Ehud Barak" borders of Camp David 2000—rejected in violence by Yasser Arafat—would also have been warranted.

That said, the President properly framed the bedrock question of how Israel should negotiate with the recently reconciled Palestinian Authority/Hamas tandem:

"How can one negotiate with a party that has shown itself unwilling to recognize your right to exist?"

The question broaches the fundamental backslide represented by the Palestinian Authority's rapprochement with Hamas.

For years, the United States, Europe, and Israel have worked with the Palestinian Authority to create positive change and see the realization of a two-state solution.

The benefits have been seen economically. In 2010, the West Bank economy grew by 8%. Last month, an Israeli and Palestinian duo created the first Palestinian venture fund, worth $29 million. Palestinian Prime Minister Salam Fayyad is widely credited with providing stable and transparent leadership for the Palestinian economy. Yet, he is passionately disliked by Hamas.

Moreover, important security cooperation between the Palestinian Authority, Israel, and the United States has been essential for improving the quality of life for Palestinians living in the West Bank. Hundreds of check points and dozens of roadblocks have been removed. Part of this improved relationship is due to U.S. military training and equipping of nearly 3,000 Palestinian security forces.

Speaking of reconciliation, then, how can this improvement on the ground and the two-state solution be reconciled with Hamas?

Hamas is an enemy of the United States and Israel and is designated as a terrorist organization funded by Iran. Hamas' leader Khaled Meshal condemned the killing of Osama Bin Laden calling him a "martyr" and a "holy warrior." While firing thousands of rockets at Israel, Hamas has vowed never to recognize Israel.

Prime Minister Benjamin Netanyahu has expressed his willingness to negotiate with Hamas if they meet the Quartet's (United States, E.U, Russia, and U.N.) three threshold principals: renounce violence, respect all past agreements, and recognize Israel's right to exist.

As democratic impulses are energizing some parts of the Middle East, President Obama properly warns against the increasing efforts to delegitimize Israel and the foible of unilateral declaration of Palestinian statehood. President Obama correctly noted this when he said:

"Symbolic actions to isolate Israel at the United Nations in September won't create an independent state. Palestinian leaders will not achieve peace or prosperity if Hamas insists on a path of terror and rejection. And Palestinians will never realize their independence by denying the right of Israel to exist."

Similarly, the Palestinian Authority needs to decide if it wants to be a partner of peace or a partner of Hamas and Iran.