I don't know the answers to those thought-provoking questions, but I do know that President Bush's recent statements against Israel's retaliation methods and sending Zinni back there and offering up to arafart a meeting with Cheney is NOT doing the right things. Nor are the constant (and increasingly embarrassing) "chidings" that arafart gets -- crap like "We are disappointed that Chairman arafart isn't doing more to cut back the violence."
Right now, I think that the best we can (and should) be doing is morally and vocally standing beside Israel, especially in our common fight against terrorism.
Publicly telling Sharon to do whatever he needs to do, to eradicate Islamofascist terrorism -- just as we've been doing to the Talibastards and al Qaeda -- would be a very good start in standing with Israel.
Believe me, I think it is absolutely ludicrous for Bush (or any other government official) to tell Israel what to do. They have a right to defend themselves against attack just as we do. It seems to me that we actually tend to exacerbate the problem by trying to be a "peaceful mediator." Personally, I think Israel might fare better without our interference.