Unfortnately the Arabs are degenerating into a gangland war between factions to carve up the old Don's territory. Right now it looks like the PLO will be replaced by the Hizbullah, the Hamas is the third horse in the ring. That means that Egypt will loose position to Iran with Syria hot on its heels.
Indeed. But such gang-like rivalry is an opportunity in and by itself to strike a blow at competing terrorist movements.
And given the tight grip of Fatah over every aspect of Palestinian life, I would'nt be too surprised if a sizeable part of the Palestinian population would be happy to get ridden of the parasitical "Liberation Fronts" that all but maintain them in their current dire situation.