>>According to his former boss, Rafik Halaby, his reports "often angered the right and the director-general [of the Israel Broadcasting Authority] because he presented the Palestinian side." <<
Well apparently he wasn't. Read the article.
He'll be returned tomorrow, because the Palestenians will realise their mistake. They kidnapped someone that was on their side.
You are also right about the mistake being made by the terrorists. Maybe that's why he was released, though I support the notion Arafat simply called up his buddies and told them to stop it as he had other interests.