I dont see the issue here. Musharraf told Israeli leaders nothing will happen without settlement of Palestine. It enforces the importance of the issue in the minds of israeli leaders face to face. It also gives a chance to understand israel's words and long term intent.
Its a sin to misrepresent someone, and unsmart to misjudge bigger strategy. Erdogan had been talking to israel, just like major arab leaders trying to make peace. Someone has to talk and mediate for that. Its called showing leadership. Pakistan is no longer seen as a leader or a player. Its too internally unstable for that.