The terror he can control, he won't, and the then there is even more that he can't. He's utterly useless..
I say get rid of Arafat, let the Palestinians pick Hamas or Hezbollah as their leaders. It will only expose their true nature and goals if they did. If they manage to pick respectable leaders with respectable goals so be it, and the world would be better off.
But, if a Hamas or Islamic Jihad were in power and attacking Israel, Israel would be even more justified in a total anihilation of that entitly and the threat to Israel.