Well, we have a few problems here.
Firstly.
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This "no authority" is a new claim. If Arafat didn't have the authority to accept the offer made via Clinton in 1999, then he didn't have the authority to announce the intifada and the intifada never began, right?
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What year is it? No, really. They have no been in a position to reign in militants without outside help for a very long time, as the situation has deteriorated they have lost most remaining authority and ability.
Secondly, you fail to differentiate between an understandable response and a valid response. I in no way support terrorism but I understand why people have resorted to the actions they have, it's called empathy.
Secondly, please stop using the 'aww cute liddle kid got wasted line', it does nothing for your argument and frankly, serves only to undermine the entire discussion.
I'd like to see a source (preferably avoid rabid zionist monthly this time) for the 'vast majority', in detail. I'm fairly convinced the vast majority of people just want to get on with their lives without being shot, humiliated, bombed, shot at from choppers, caught in inter-group fighting and IDF/militant fighting. That goes for both sides. The 70% odd support for the withdrawal from Gaza points strongly to that. Those that do support continuing the campaign most likely do so because periods of relative peace certainly haven't drawn many concessions from the Israelis.
As far Arafat, he is a symbol, of course people are going to rally around him, doesn't mean they listen to them or if his will is not particularly popular it's going to happen.