I think Bush is buying time for Sharon to get the job done on the terrorist. We will be able to tell about all of this after we see what finally happens. Bush is keeping his hands clean, but is giving Sharon a very wide swath to clean out the terrorist havens.
Scratchgolfer, you've got it right. Bush knows that he doesn't need to call Arafat a terrorist, he just doesn't criticize Sharon when he says it. Bush is smart to keep Arab anger focused on Israel, rather than having more suicide bombers sent over here. As long as the Pali's think that we're the only hope of reining in Israel, they will keep us off the target list. But as soon as that changes, the orders go out to Israel---go get 'em, wipe them off the face of the earth!
Most Americans have come to realize that Israel is on the front lines in the Western world's battle against the false religion of Islam, its our President's job to keep them on the front lines, until we're completely ready to join them there. Late entry into World Wars I and II did not hurt us in the outcome, it won't on WW III, either.