I look at it the other way around. This decision by the Obama administration may have also taken the whole issue off the table as far as the U.S. is concerned. The controversy over the status of Jerusalem and the various "occupied territories" in the Middle East is really not America's problem to deal with.
A big red flag here for me is that Lindsey Graham -- one of the most despised Republicans here on FreeRepublic -- has been the loudest critic of Obama on this from the Republican side.