(and they're not), and they believed Arafat was the big stumbling block, they would have assassinated him a long time ago. They certainly have no compunctions about assassinating Hamas leaders and bomb makers. If nothing else, Arafst is a convenient scapegoat for the Israelis. A perfect excuse to devastate any and all Palestinian infrastructure so that there is not "the other side" to negotiate with.
To build the Greater Land of Israel the Palestinians must leave or die. Peace is not an option. If you note some recent Israeli government action that contradicts this belief, let me know.