The "or else" doesn't have to include battle plans... but it does need to exist. The carrot needs to have a stick handy.
Many here have stated that Arafat and the Jihadists are less interested in a Palestinian state than in eliminating the Israelis from their part of the world. Since the speech was dangling the Pallie state in front of them, is it so unlikely for them to simply say, "So what? That's not what we really want anyway!" If/when they do say that, and continue the bus bombings killing a few dozen more schoolchildren, what will we do? Apparently nothing (other than restraining the Israelis), since nothing was mentioned.