Still, ther's this old saying : better the devil you do know than the devil you don't...
Arafat is an old geezer and he will croak soon. This will open a window of opportunity for both Israel and Palestinians to get rid of the PA madness, terror-funding and corruption.
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.