Hello Dan,
Well done, in explaining the situation as it currently stands. I feel the same, in that there seems to be a lot of potential for positive US involvement. However, this can be shot down if both Israelis and Palestinians are unwilling to give a little in the negotiation process. On the other hand, having expert cultural personnel helping US diplomats is essential. Both Israeli and Palestinian cultures approach negotiation and agreements differently than Americans or ever say Westerners do.