Well, the quote hasn't been denied, and Arafat's actions indicate that the quote was true (that is, his actions indicate that he can't be trusted and that it might be better to negotiate with others). Also, no denials from Zinni, no retractions, and most importantly not a word from the USA regarding Israel's decision to ignore Arafat. All this indicates that Zinni has either concluded that Arafat is worthless and sent this info on to his bosses, or that the White House/State Dept has sent word to him that Arafat is now to be ignored.
Now, here is mind bender for you... presuming that the quote was true, how much influence did his conclusion that Arafat is worthless have on the decision to attack the bus in Emmanuel?
Interesting question, but since you wrote that post the US has come out with a statement that it will continue to deal with Arafat. Which, incidentally, was exactly opposite of what I predicted a couple of posts ago.
I doubt that Zinni's comments triggered the bus attack. I think some planning went into that attack and that it was something in the works for at least a couple of weeks.
But I may just give up trying to figure out the Middle East. Every time I think I have a handle on it, something surprises me.