Why would he?
You meant to add, "besides the fact that it's morally reprehensible", of course. "Besides the fact that it's creating a deeply broken culture that worships death and promotes hate and violence in its six-year-olds." I'm sure you meant to add.
Remember how a few weeks ago Arafat suddenly said OK, that Clinton plan was good, we'll accept that now. He didn't get anywhere with that idea, because after 20 months of Intifada it was way off the table.
So suicide bombing has been more than ineffective at promoting the cause of statehood; it has, in effect, polarized the diplomatic atmosphere against Arafat, especially in a post-9/11 world.
The question should be "why WOULDN'T he?" The reason: because it's only while he is the center of Islamic rage against the world that he has any power whatsoever. The Arabic leaders are all like "We must help the cause of our brothers in Palestine!" because they have a wet dream of defeating the West, somewhere, anywhere. So they send him money, and they send him weapons, and a while back there was an unverified report that $5.1 million of Arabic assistance money found its way to Arafat's personal bank account.
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