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This is a good question.

My analysis:

First and foremost: It is not a demand that Israel accept a ceasefire, it is a demand that Hamas accept the terms of a ceasefire. Sometimes this is a very subtle difference, but one the key elements of a ceasefire negotiation is that each side is trying to continue fighting while making their adversary look like the aggressor. So far, it looks like Biden has moved slightly, but he still is not applying pressure on Netanyahu to end the war.

Second: Continuing on that last point, there is no leverage. Biden has persistently chosen not to do anything that would actually apply pressure. He has deferred to Netanyahu's judgement and supported him while gradually shifting in tone, but it's become 1000% clear that Netanyahu will stop when he is forced to, and not a moment sooner.

Third: The focus is constantly on micromanaging the situation. Debating how many civilians can get killed, what fraction of the homes can be demolished, how much territory Israel can appropriate in Gaza. None of this actually addresses the foundational issues: one side is imposing apartheid with genocidal intent on a neighbor that is largely powerless, and the other side's only real avenue for expressing itself is through terrorism. Which is bad for both sides. If these realities persist, then the cycle that has governed nearly three generations is allowed to continue. There must be a breaking point in that cycle, and referring back to point 2: it's going to have to be imposed on the leadership in Israel. They WILL NOT accept it willingly.

In summary, this is a very welcome change in narrative for Biden, but we are far past the point of fiddling with narratives. We need policy action, and it's incredible that he's still dug in like this after another state department official just resigned because she said that she was being pressured to be an accomplice in breaking US law against knowingly aiding war crimes.

From a Washington Post article on it:

The new element in the proposal would come with a second phase, during which Israel and Hamas would negotiate a permanent cease-fire and complete Israeli withdrawal. Under the newly announced plan, the temporary cease-fire would continue beyond the six weeks until such a permanent plan is put in place, provided neither side violated its terms and negotiations continued.

So the second step is basically optional. Israel can pause the invasion of Rafah, get some hostages back, and then just go back to what they were doing. Netanyahu's already said all the hostages are not enough for him to stop, he also requires the destruction of Hamas (the people who are supposed to accept the negotiated terms) and long-term security control over Gaza (i.e., reestablish the occupation), so the negotiations are probably doomed from the start. It's really a one-phase plan for a limited hostage swap masquerading as three.