Only in Washington D.C. does speaking the truth cause such an uproar.
I really didn't get this as an insult to Clinton, anyway. My read on this was that he was responding to a dumba** reporter's attempt to smear Bush as being "not involved enough" by pointing out that when a President (the former one) was very involved, things didn't turn out any better. Which is true.
There is a lesson here. No matter what you do in terms of Arafat and the Palestinian problem, it will come up and bite you in the a**. You can't give people peace, you can't force peace upon them --- people have to be ready for peace. And, the Palestinians ain't ready.