That little enclave of 8 million people is too geo-politically important for the US to cut it loose. Israel is allowed to do things that publicly we claim to abhor, but privately applaud. It does much dirty work for the US, and may be called upon again -- to take out (at least degrade) Iran's nuclear weapons capability. It also keeps certain Arab states nervous.
I view Israel as our pit bull on a leash. Periodically, we need to jerk the leash a bit. That appears, in part, to explain President Obama's strategy: give Bibi's chain a jerk or two to keep him in line.
Those who underestimate President Obama do so with a veil of ignorance over their face. He is one crafty dude. I believe this will be borne out by history.
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