I mostly agree with you Peter
I just wanted to point that some palestinian have another agenda than Arafat for exemple the Hamas I don't think that Arafat has lot of control on Hamas guys ...
I don't see a political solution possible currently just because there is no (like Babek said previously) Adenauer or de Gaulle in middle-east ...
By saying that Arafat is a terrorist the Isrealy forgive that their prime minister was a terrorist too (at least for the brit).
And the current "competition" between IDF and suicide bomber is going nowhere ...
but the majority of the israelis do want peace and a palestine.
I believe so ... but the settlement are the way to go ...