They are full of sh!t, and they fool only themselves, obviously, since neither the USA nor Israel are falling for it.
I think it's pack and move time for the Palestinians, for their own good. When Arafat dies, the different terrorist mafia groups will tear each other apart in a turf war, the police will protect their own personal interests, the innocent people will get caught in the middle, and Palestinian nationalism will never, ever, be united again.