One of the major misconceptions of many people is that Israeli compromise and concessions will be positively viewed by the Arabs, and will increase chances for peace. The fundamental flaw in this logic is that we are dealing with a different mentality here, and you cannot superimpose Western values on to the Muslim world.
This news item from Memri illustrates the point:
LEBANESE PRESIDENT EMILE LAHOUD SAID: ‘ISRAEL DID NOT WITHDRAW FROM THE SOUTH [OF LEBANON]. THE TRUTH IS IT WAS DEFEATED. THIS DEFEAT WAS CAUSED BY LEBANESE WILL AND UNITY. THIS IS THEIR VICTORY AND HISTORY WILL MARK IT.’ (AL-SAFIR, LEBANON, 12/6/03)
Israel withdraws, and the Arabs claim victory, and see it as a sign of weakness. This can also be applied to the current violence, which is a direct result of the Oslo accord.
Israel, and indeed the world, would be better of showing their strength, leaving the Arabs no alternative than to accept Israel’s existence and a peaceful future.