Bush Calls for New Palestinian Leaders (washingtonpost.com)

Sounds like a good idea to me.

"When the Palestinian people have new leaders, new institutions and new security arrangements with their neighbors, the United States of America will support the creation of a Palestinian state, whose borders and certain aspects of its sovereignty will be provisional until resolved as part of a final settlement in the Middle East," Bush said.

In other words, we support the idea of a Palestinian state in principle, but since none of this is going to happen in our lifetimes we'll never have to actually deal with one.