I just had occasion to pull out the book "The Only Language They Understand: Forcing Compromise in Israel and Palestine" by Nathan Thrall. Turning to the final chapter "Obama's Palestine Legacy", the author notes:
"In a 2003 toast to Rashid Khalidi, the Palestinian American historian of the University of Chicago and later Columbia University, Obama reminisced about meals prepared by Khalidi’s wife, Mona, and the many talks that had been “consistent reminders to me of my own blind spots and my own biases.” He had dined with and attended lectures by such figures as Edward Said, the most famous and eloquent Palestinian critic of the Oslo Accords, and he had offered words of encouragement to Ali Abunimah, the Palestinian American activist, writer, cofounder of the Electronic Intifada, and leading advocate of a one-state solution."
Most certainly, Obama was quite well informed as to the realities. Was he shocked? Not hardly.
Ali Abunimah once tweeted a now well-known picture of the Obamas at dinner with him, Rashid Khalidi and Edward Said. It can be seen at https://twitter.com/AliAbunimah/status/314391265192071168/photo/1