While I admit that your knowledge of the situation on the ground in Israel is probably more intimate than mine, I am not willing to concede that "Israel is busy surrendering to the PLO even as we speak". They are playing necessary niceties with them. In that sense, it is a poker game where Israel is guided by their considerable gray matter, while the Pallies are guided by their spleens and glands. It can look for all the world, at any given time, like the Izzies are being "taken"; but, in fact, they hold ALL THE CARDS, w/o exception. That's how I see it from here. And when you never lose, it's not gambling.
More like it is a surrender dictated by the Political needs of the American administration. As it is called a "unilateral" disengagement, may I translate into 1940's speak, unconditional retreat.