i am not terribly impressed by these comments. however, its important to note that R. Ovadia was one of the only (perhaps THE only) rabbi in the ultra-orthodox world to endorse the notion of "land for peace" (implicitly recognizing a 2-state solution) during the oslo years. As far as i know, he has not retracted this ruling. So the comments were certainly hateful, but contrary to what the haaretz reporter (and most talkbackers) seem to believe, it does not reflect a world view or an approach to peace with the Pals but rather, a strong sense that the current Pal leadership can only do harm to israel. You could dislike R. Yosef/Shas all you like, but to paint it as standard ultra-right wing party is simply factually wrong.
Shaffir to Herzog: Opposition failed to show leadership in political battles against PM (Haaretz)
from the article: Shas spiritual leader: Abbas and Palestinians should perish