Why are there no pro-peace and tolerance Arab groups whose platform declares that it is their goal to show Israelis that they can be trusted with a state? Sure it is a little embarrassing to say that, but one would think that it needs to be said. The fact that Israelis believe that terrorism is in their future regardless of what move Israel makes - is the single biggest obstacle in the way of Middle East peace.
The time is now for Arafat to think like Ghandi, and realize that he will only get about 90% of what he is asking for.
In the meanwhile remind me not to feel bad for Arabs who have to wait and get "humiliated" by waiting at long checkpionts while these scared-to-death Israeli soldiers making sure that if there is a car full of semtex that tries to get through it won't make it to the civilians. (Ask the people who have to live without legs, because a terrorist picked their shopping mall, what humiliation is.)
Israel really wants some incentive to trust the Arab population. Trust means both sides have to set their objectives to be mutually compatible with the other side doing well.
People in Arab countries and the Arab Press do not talk about cooperation. They talk about winning. You cannot trust someone who is trying to defeat you. Every confidence building measure you do is then interpreted as an opportunity for your opponent to take advantage of.
Every cafe that welcomes its Arab guests is now a target (think "Moment"). Universities, in all of Israel's history, a bastion of tolerance and cooperation are now just another place where a terrorist can walk around without arousing suspicion.
Israel needs to realize that being nice and tolerant got it no where. Everyone still hates Israel. For God's sake the Germans are the only ones in Europe who are not openly anti-Semitic or anti-Israel, and that is only because they are not allowed to be (it is illegal).