No wonder they waged war so often. They knew there was nothing to lose. Until Israel stayed on the land, now the Arabs know that war means you lose land. So they don't wage war anymore, at least not conventionally.
The President's speech included no changes. A Palestinian state based on pre-1967 borders has been US policy for some time now. And such a policy is still vehemently opposed by the Palestinians.
As for money vs. the people, that's just dumb. The people favor Israel, at least in this country.