It seems to me that American conservatives often take views about Israel and its foreign policy that are often more radical than what is seen as acceptable within Israel. I am fairly moderate, I think, in my views – moderate enough that I voted for the current Prime Minister.
Perhaps I can give a brief insight as to how this is being seen from here.
The media here (who are mostly leftist, as befitting) believe that the whole thing is a horrible screw-up by Bibi. According to this school of thought, Bibi and his crew either ineptly failed to issue the right orders to halt all construction in East Jerusalem, or deliberately encourage it to try and 'set the facts on the ground' before negotiations begin anew with the Palestinians. Either way (again according to the media) Bibi is being irresponsible by provoking our main ally, and refusing to accede to Obama's demands on the main point.
The right – and quite a few common people – are buying Bibi's line, though. Which is that Bibi is being the brave, mature man, standing up to Big, Liberal America. He stands to score points with many people by maintaining this image.
I think that by allowing the announcements on the construction to be made at te timing they were made – the first during Biden's visit here and the second during Bibi's visit to the White House – Bibi has, perhaps unintentionally (a single man can't possibly follow the movements of the Israeli construction permit bureaucracy), insulted the President of the United States. Even if you believe – some people do – that construction should proceed full-steam, the timing of the announcements is suspect.