I know American Jews seemed sanguine about this since they still vote RAT in overwelming numbers.
President Bush (II) has tried to remedy this by ignoring Arafat and trying to replace him. NO thanks from American Jews can be expected.
The Israelis would be smart not only to build their fence but to build it to cover areas that are strategically necessary for them to survive for the next 100 years. IMHO Islam is populated with envious paranoids who want to destroy the Jews regardless of any consequences to themselves. A nice way of saying they are craxy, I guess. Once there is a good fence, Arafat's popularity and power will decline and his own followers may solve his problem.
Another thing the Israelis could do is tell the American Jews how important President Bush and the Republicans are to the survival of Israel. They should also tell American Jews that a movie on the life of Jesus is not going to result in a holocaust. American Jewry has succeeded more in every area of existence than anyplace else.