Competing visions for Palestinians

Within Israel, both the left and the right appear to agree that the notion of improving life in the West Bank in order to help Fatah, and hurt Hamas, is likely to be unsuccessful, though for different reasons.

"Anyone who thinks they can strike a deal with half of the Palestinian people is deluding themselves. Legitimacy rests at the bottom, with the religious people, the refugees. Hamas can provide that legitimacy. You need them to maintain any agreement with Israel," says Shaul Mishal, a Tel Aviv University professor and author of "The Palestinian Hamas."

"Don't rush toward Fatah, because it's a pillar of sand," he says. "It's too corrupt, too confused, and tired."

He also says he thinks the two movements will patch things up. "This isn't the end of the game, this is the beginning of the game. Israelis shouldn't delude themselves that the harsh words are indicative of the long-term strategy of Fatah. I am sure within days or within weeks they are going to talk to each other."

A more right-wing Israeli view is that building up Abbas is a waste of time, since he hasn't been able to stop rocket attacks on Israel or secure the release of Israeli soldier Cpl. Gilad Shalit, who's been held in Gaza by the armed wing of Hamas for the past year. On Monday, Hamas released an audio tape of Corporal Shalit in which he said his health was deteriorating and called on Israeli to meet his captors' demands – a prisoner exchange.

Raphael Israeli, a professor at Hebrew University in Jerusalem, says Israel should not waste its time on trying to work with Abbas and his Fatah Party but instead should focus on treating Gaza as its own state and, if necessary, use tough sanctions like turning off the water that Israel provides.

"The Sharm el-Sheikh conference was no more than a show. All the pressures are on Israel to make concession to Abu Mazen who is a virtual reality," he argues, using Abbas's nickname. "Abu Mazen showed he would turn against the terrorists only when the terrorists threaten his own government. We should put an end to this problem."

Ms. Eisin said the Shalit issue has stood in the way of more Palestinian prisoner releases and implied that until it's resolved, Israel will have nothing to do with Hamas.

"What Hamas did [Monday] is definitely within the lines of their own cruelty. It's the same Hamas that took Shalit, the same Hamas that took over the Gaza Strip, the same Hamas who was in the government, and the same Hamas we won't deal with," she said.

Nevertheless, with Egypt appearing to call for Fatah to reconcile with Hamas, Israel may not have long to deal with Fatah alone. But the formation of a new unity government may come with a more quiescent Hamas, some analysts argue.

Meir Javedanfar, a Middle East expert and author of "The Nuclear Sphinx of Tehran: Mahmoud Ahmadinejad and the State of Iran," says Iran, which has provided funding to Hamas, is pressuring the movement to reenter unity talks, partially because the recent round of fighting makes Iran look like it's fueling civil war among Arabs.

"The recent takeover of Gaza has backfired. … Hamas has become more isolated than before,'' he says. "They've lost popularity because they've been shooting Palestinians in the street."

Mr. Javedanfar also says he believes new unity talks are a matter of time, but doesn't argue against helping Abbas now as any increase in his popularity will give him more leverage at the negotiating table.

"The easier Israel can make the lives of Palestinians in the West Bank, the more that's to Fatah's advantage," he says. "The best gift that Israel could give to Abbas is to carry out more withdrawals in the West Bank, that would make Abbas look like a leader who can deliver. But unfortunately I don't think Ehud Olmert is in a position to do that."

• Ilene R. Prusher contributed from Jerusalem.

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