Sorry, but people should not be held hostage, nor should the morality of an action be judged according to how terrible the reaction might be.
The fact that you cannot see the parallels demonstrate empirically that your take on this situation is indefensible.
You, and others who have mysteriously morphed from Right to Left, see the so-called Palestinians as "justified" in their reactions to the Israeli so-called "oppression." Yet my ancestors, who truly were oppressed, did not resort to violence as a means to an end. If they had done so, I wouldn't be here today.
Moral relativism doesn't cut it. Right is right if no one is doing it, and wrong is wrong if everyone is doing it. What Arafat is doing is wrong, period. End of story.