Diane pointed me to this rather pessimistic article in the Washington Post.
The despair is likely to stiffen the objections of many Arabs to any new Middle East peace deal seen as selling short Palestinian interests and promoting Israel's further integration into the region, analysts said. So too, having been humbled at the hands of America, Arabs could be less receptive to Bush administration efforts at preaching democracy in the region.
As if to prove my point, while my mother-in-law was serving us a delicious Hag lunch, Arafat and Abu Mazen managed to reach an agreement about the new Palestinian government, it seems, with a little help from their friends (knowing Mubarak and his great love for Arafat, the heavy pressure reportedly placed on Arafat by Mubarak's emissary, the head of Egyptian Intelligence, Omar Suleiman, would have had Suleiman sitting on Arafat, pummelling him and shouting, "Ya kalb, ibn kalb*, let Abu Mazen have his way!" Excuse me while I fantasize a little).
* Dog, son of dog. Rumor has it that Mubarak has used this manner of addressing the honorable Palestinian Ra'is** once or twice in the past.