There must be some mistake here. Now that Arafat is gone, the peace-loving Palistinians want nothing to do with the complete elimination of Israel from the face of the earth.
Israel needs to keep on doing what need to be done to protect its citizens and take out the terrorists.
Why not roll out a dozen of captured Grad systems (katyusha type multiple launchers - Israel has captured quite a few) and burn out a square mile or two on the other side of the fence? If the exercise is repeated after each Kassam, then it would not be long till the lesson sinks in.