Netanyahu Supports Two States?

Matthew Yglesias sums up Bibi's speech:

To thunderous applause from congress, the Israeli Prime Minister made the following points:

— One, a surprisingly lengthy argument was advanced about Israel’s status as the only democracy in the region.
— Two, a very strong argument was advanced that Palestinian failure to publicly repudiate “right of return” makes peace impossible.
— Three, argued that Israeli security requires Israeli military presence in the Jordan River Valley.
— Four, argued that Jerusalem should never be divided.
— Fifth, argued that there should be no Palestinian military.
— Sixth, argued that “the Jewish people are not an occupying power” in the West Bank.

This very cogent case for granting full civil equality to Arab residents of the territory under the control of the state of Israel was then undermined by a weird insistence that he’s actually aiming for the establishment of two separate states. One for Jews and one for Palestinians. Except the Palestinian state won’t include the demographically Palestinian portions of Jerusalem, and the only military in the Republic of Palestine will be an Israeli force. That would be a funny sort of state.

I agree.  How in the hell do you create a "state" that is occupied by an unfriendly neighbor and is never allowed to have a military? Sounds more like, "I want to make the peace process unworkable."  Well, thanks for coming over, just don't go looking for military aid from this government that needs to make sacrifices.