Indeed. Obama can play the diplomatic equivalent of "We do not negotiate with terrorists" (like "We do not negotiate with allies", I guess), as a machismo stance while Snowden conveniently walks free until he's forgotten by the mainstream American media and stops being a political problem.

The problem with this approach is that it doesn't buy Obama much with the people he's disappointed on this issue. But it does get the matter out of the public eye and prevent additional embarrassment.