Not surprisingly, Barack's groveling before the Palestinians did not impress them:

But the Palestinians rejected the American offer following a meeting late Wednesday of Arab representatives and said it is planning to press for a vote on its resolution on Friday, according to officials familar with the issue. The decision to reject the American offer raised the prospect that the Obama administration will cast its first ever veto in the U.N. Security Council. 

So did we think better of our willingness to sell out our friends?  Nope:

Still, the U.S. offer signaled a renewed willingness to seek a way out of the current impasse, even if it requires breaking with Israel and joining others in the council in sending a strong message to its key ally to stop its construction of new settlements. U.S. officials were not available for comment, but two Security Council diplomats confirmed the proposal.

Our cowering foreign policy has undoubtedly begun to wear tremendously thin on our allies.  This administration cannot end soon enough.