This could be predicted since over the past week or so many sane heads on both sides of the political spectrum had indicated that the Snowden issue should not stand in the way of the many other issues confronting US/Russia relations. The Obama administration can always be counted on to do either nothing or the direct opposite of what most sane people would do.
What's the end-game here? Does Obama really think Putin is going to bow to his wishes? Not bloody likely. And how does Obama gracefully extricate his foot out of his mouth in a few weeks, a month, a year?
This totally smacks of spite on the part of Obama because Snowden let the cat out of the bag and has embarrassed him. It's not related to what the US government and peoples' needs may be - it's totally related to Snowden getting under Obama's skin.