Why the hell do you think IDF forces are in that hell hole in the first place?! They weren't there when the PA and the terrorists started their campaign 18 months ago.
Uhh... the settlements were there, and all the military defence they require are all around them. That's the main point. There will NEVER be peace unless the settlements are dismantled completely. Of course that is not the only thing that must happen, but it is a key item.
Singapore Air: I agree that blowing up civilians is evil and stupid, but where did you get the idea about "Palestinians clinging on to land which isn't theirs anyway (correct me if I'm wrong) blowing up the main people's (jews) land."? Do you think that The Zionist movement of the early 1900s, and the mass exodus from Europe during and after WWII of Jews went to a deserted land with no people on it? The land has been called Palestine since Roman times. The people who lived there are called Palestinians. I'm sure you've heard about the Israeli-Palestinian negotiations, and that one of the big sticking points is whether to allow the return of refugees, who fled the country when Israel was formed. If there are refugees, then that would logically mean that someone was living there before 1947, right?
Donder is right - the main problem are the extremists like Hamas. They have been very smart in not going after the PA, whom they consider as traitors.
The problem is that the average Palestinian in the street feels that the terrorists are getting better results than Arafat and the PA. The PA have been completely locked in by Israel, they can't do anything anymore without Israel's consent - truely a puppet government. The Palestinians probably feel that their hopes for independance cannot be served by such a powerless entity, and throw their support behing the radicals.
The solution is to strengthen the moderates' position. Grant the PA a few victories, like the negotiated dismantlement of half the settlements, the others to be dismantled at a later date. If the people start seeing the PA getting better results than the terrorists, their support will diminish. If the PA makes some serious progress towards independance, any attacks by Hamas could even be seen by the average Palestinian as a threat to the achievements already made, and thus the PA would have the popular backing to crack down on them, which they currently do not have (they don't even have anything to crack down on them with right now - the Israelis blew up all their security forces.)