Bush has done something no previous Administration has been able to do, and that is to isolate and diminish Arafat's stature within the PA itself. As long as Bush thinks there's a thread of a chance that peace can be achieved, he's willing to work with the PA, but not with Arafat, and his promotion of Abbas as a "working partner" is intended to marginalize Arafat, and perhaps to bring reform to the PA itself.
Powell's "appeal" to Arafat was actually an appeal for Arafat to give up to Abbas the remaining authority he (Arafat) has in the PA -- authority over the security forces. Arafat won't do this, of course, and Powell knows this. Hence, Powell's statement and "appeal" yesterday wasn't so much to Arafat, but the broaching of a policy to the international community in general that what remaining power Arafat has, he needs to give up. This being the objective of the Powell statement, it makes sense.
I'm not ranting at you, Veronica; I'm more responding to this because of the two chowderheads I heard on KSFO in San Francisco this morning blathering on about the "moronic" Powell and his "appeal" to Arafat. They gas off in complete ignorance of our strategy in the Middle East.