It appears from the rant of the "unnamed official" that Ross tried to explain to them more or less what I explained in this thread- that they're not going to get any better than the current government, and pushing past its red lines isn't going to do any good, and the Obama team handled the disagreement the way they always do.
The really worrying part is that they apparently think that "this has become bigger than Jerusalem but is rather about the credibility of this Administration". Get it? Saving Obama's face is "bigger than Jerusalem".

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Ehud Barak doesn't seem to be. Yet he is part of the coalition. What I meant was that by stating that she backs Netanyahu regarding East Jerusalem and punctuating that by joining the coalition, Livni could send a useful message. And in fact, by joining the coalition, she may be able to influence Netanyahu in other policies. 

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