Elder of Ziyon has a great post up here, dovetailing what I wrote about today and yesterday, the selective parsing of Benedict XVI's rhetoric and remarks.
"Mr President, the Holy See supports the right of your people to a sovereign Palestinian homeland in the land of your forefathers, secure and at peace with its neighbors, within internationally recognized borders.I would note the utilization of that term "homeland", as opposed to a "state". Granted these are nuances, however, with Pope Benedict XVI every word he utters has rhyme and deep purpose, particularly in the present mindfield he finds Himself in.
"Benedict said he hoped both Palestine and Israel would become more secure places so that Palestinians can have more freedom in moving around the region. While he acknowledged the suffering of the Palestinian people, he called on them not to resort to violence."
He used similar rhetoric upon His arrival at the Tel Aviv Airport, although today at the Aida Refugee Camp He did allude to parameters of a "state" which is being pushed by the PA.
I would note that even the Netanyahu government believes in a quasi-"state"/territory type solution. Granted not within the framework of what the Obama administration, the UN, or the PA desire but some sort of working agreement, nevertheless.