Bush may consider himself El Presidente of the entire Amerikan continent, but he is not world dictator yet. The congress, senate, and a majority of American citizens are solidly supportive of Israel. Israel doesn't have to heel like a dog on a leash to Bush.
It is Bush, out of the blue, that does startlingly weird and shocking things. After the worst attack against American citizens, Bush, not being content just to pander to illegal invaders, liberals, welfare for immigrants, and "moderate" heads of terrorist charity fronts, comes out of the blue with, "I think there should be a Palestinian State". Whose side is he on?
Israel is sane and just trying to survive our ribald and ever changing foreign policy. The fact is if Israel granted the terrorist thugs the land that the U.N. ripped off from Israel it would vanish in less than a year. Naw, they don't have to listen to Bush, they will still be around long after he is back in Crawford counting catus.