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I agree that a terrorist state cannot and should not be established in Judea, Samaria, and Gaza. Hwoever, not all Palestinians are terrorists. Many (if not most) just want to live in peace, feed their families, and work normal jobs. Their so-called leadership is the problem, and the fact that anyone who questions that leadership is branded a "collaborator" and risks death.

No, there can be no state under Arafat or his ilk. There can be if there is a genuine change in leadership, a Palestinian media that supports peace, and no more agitation from Iraq, Syra, Iran, Saudi Arabia, etc...

Oh, and no, I don't see any of this happening soon.

there can be no state under Arafat or his ilk.

Right. Bush has said that they could have a state within 3 years of changing leadership. But Arafat's trips to Camp David are over.
And a Palestinian state could not be allowed to arm itself. Nor could it be allowed to harbor arms from another country. An International plan to defend it would be necessary.