How is Pres. Obama not caving on the tax cuts?

I'm having a difficult time with President Obama's new comments about the tax cuts.  Let me review how the "negotiation" has gone so far.

Republicans: Our position is that we want all the tax cuts made permanent.

Obama: My position is that I want the middle class tax cuts made permanent, but no extension of the tax cuts for the rich.

Republicans: No.

Obama: Okay, how about making the middle class tax cuts permanent, and we can extend the tax cuts for the rich temporarily?

Republicans: No.

Obama: I'm willing to negotiate.

Obama's comments today don't seem to contradict Sam Stein's reporting yesterday, namely, that the White House is planning to cave on the tax cuts.  Even the President, today, said that his main concern is guaranteeing that the middle class tax cuts are made permanent.  Well, the Republicans' initial proposal, to make all the tax cuts permanent, does that.

Where is the negotiation in all of this? All we see is that the GOP and Obama both staked out a position, and the President is publicly negotiating with himself while the GOP continues to say "no."  How is this a change from the President's pattern to date, in which he caves repeatedly while the other side just sits back and watches?