President Obama’s flawed approach to Middle East peace seeks preliminary agreement on borders and mutual recognition before resolving the key issue of refugees. Why should Israel make sacrifices to create a separate Palestinian state if Palestinians still insist that the Jewish state must accommodate millions of hostile Arabs who claim “returnee” status? There can be no progress toward the so-called “two state solution” if both those states are supposed to become Palestinian homelands. Moreover, Palestinian insistence on counting as refugees anyone in any country with one great grandparent who once may have lived in Israel is ludicrous. With two homelands, Israel can welcome all Jewish immigrants it chooses to accept, and Palestine can accept all Arab immigrants it desires. If this distinction remains unclear, the proposed Palestinian state would intensify conflict, not bring progress toward peace.