This is not good at all. Ten years ago Arafat was told he is mad letting the Hamas grow. Back then it was convenient for him that a different organization attacks Israel while he is negotiating. Surprise surprise, it got out of hand.
The Fatah, a secular nationalist organization is someone with which a future compromise can be made. It is lead by a bunch of idiot impotents though, who were so afraid to confront Hamas when it was small that now they have to confront it when it is big. The Palestinians will have no state unless then can be represented by one organization speaking in one voice and strong enough to control his future state. This is the critical point that Ben-Gurion realized and Arafat/Abas didn't. After Israel withdrawal, Fatah had an opportunity to demonstrate its ability to rule and keep other groups under check. Their failure that started with several thousand rockets fired on Israel and now this, casts many doubts on future agreements.
Hamas in Gaza and Fatah in the west bank is an impossible situation. The Gaza strip is just too small, crowded and lacking in everything to stand on its own. Don't expect too much help from Egypt. They have enough trouble from the "muslim brothers" and would not give them a victory and base of operations in Gaza. They also do not want the Gaza strip back.
