If we just say "OK you can have it" of course they're not going to give it up.
It really isn't important that they give up the entire program. Obama has expressed before he understands if they want peaceful energy and then if we can guarantee that somehow (adequate inspections) then we can accept that. But we need to know they aren't trying to build the potential for nuclear weapons.
What we need is a carrot and stick approach. Threaten worsening sanctions while at the same time offering a total rescinding of sanctions coupled with favorable trade policies and for us to pay for the inspections if Iran agrees to our terms. Send a message: we can not tolerate the development of nuclear weapons but we don't have to be enemies at all if you give that up.
No, Iran would not have stopped their nuclear program if Obama had given them the option to keep it, because Iran likes being a threat to the rest of the world. Obama is wrong to think that terrorists and dictators can be negotiated with. They will not be happy until the United States no longer exists. Obama is too sympathetic and just believes he can talk to people who will not listen.