I wouldn't be at all surprised if their focus shifts to Israel from Iraq. They are losing big time against us, they have a recent "victory" in Israel. Look for a huge infux from Egypt.
The palestinians won't change, but it makes an excellent staging area for al Qaida. Arms have been flowing freely over the border with Egypt, as have terrorists. If Fatah and Hamas can resist staging attacks from Gaza, rather concentrate on the West Bank, al Qaida has a safe haven to operate from amidst a sympathetic population.