I think you have it right. Imagine what a target rich environment an Arafat funeral will be for special ops and Israel. Heck even Binny himself might see this as an opportunity to wipe out the dictators and declare himself leader over the entire Muslim world.
I agree with ya'll. An Arafat funeral may be as secret as bin laden's cave address. Could it be that Chirac is doing his darnest to hide away a body and funeral to protect the freaks from special ops?