That's like saying that Blacks were living in total equality and harmony with Whites in the 1950's.
If they're so happy why do they fight back?

Back to the main topic Arafat. Alot of Palestinians have voiced that they don't want him representing them, but they don't really have a system to vote in somebody better. It's like our system of having to choose between two zero's for president except they only have one person to choose from.

The way to fix the Israel/Palestinians situation is to try to get the two sides from fighting (duh, obviously, that's the definition of peace). But Naziesque tactics of rolling tanks through and killing anybody that opposes won't work.

First try to get Arafat out of the picture or shuffle him to the backgoround till he can be replaced.

Next quit giving Israel $3 Billion a year. We can't be a mediator if we take sides.

Finally tell everybody involved to lay down their arms and work towards peace. If they want to protest, do it peacefully; it works alot better than force and results in less deaths.

As an incentive we can spilt the $3 Billion we give to Israel between the two sides in a new version of the Marshall Plan. All money goes to public works and rebuilding cities, no more funding foreign militaries. We'll even give an additional half a billion to whichever side helps the other out the most. As americans we're already giving 4 cents a paycheck to this region, I'd like my money to go towards fixing Israel/Palestine, rather than destroying it.

After everybody starts to play nice with each other and calms down we can discuss writing up plans for two independant free states.

Nobody has to be run into the ocean.