Obama's UNGA address and US commitment to a Palestinian State

In his address before the UN General Assembly, Obama “reaffirmed US commitment” to a sovereign Palestinian State. He also mentioned the Israeli occupation - once - when he said: “On the same trip, I had the opportunity to meet with young Palestinians in Ramallah… They are understandably cynical that real progress will ever be made, and they’re frustrated by their families enduring the daily indignity of occupation.”
However, he didn’t explicitly say that Israel must end its illegal occupation, nor did he utter a word about Israel’s illegal settlement policy, which, too, must be stopped - and already existing settlements must be dismantled.
What about the illegal Separation Wall, which has nearly become forgotten?
So what kind of a sovereign Palestinian State was he referring to?