There comes a time when a nation must act in it's own interests to survive. But, at the same time, there are steps that Israel can take to repair their image, such as ceasing the building of new settlements in traditional Palistinian territory. It seems that Sharon is now willing to back off a bit from his aggressive push in that area, but perhaps a bit too late to make a real impression.
The whole situation over there is sad to watch. I really don't think it will be resolved. The three "great" monotheistic religions of the world (Judiasm, Christianity and Islam) started directly in the middle east from the same root, Abraham, and now we are witnessing the ultimate clash of religious ideals in the same spot. Only direct intervention by God Himself will resolve this one.
Arrafat may be neutralized, but the basic problem in that area will only get worse until it builds into the greatest conflagration the world has ever witnessed.
Go ahead....... stone me. ;-)