The problem was not the boycott, as the PA received more money in 2006 than in 2005. The problem was that the West still believes Abbas is working towards peace. He's never done so and his complete lack of attempt to do so is why Hamas won in Gaza. Well, that and Egypt's complicity in Hamas' arming there. Only Hamas can let Gaza live, by changing. Israel has no responsibility to do anything other than kill Gaza as long as it's controlled by people openly fighting against Israel's existence.
Egypt postpones verdict in retrial of Al Jazeera journalists to Aug. 29 (Reuters)
from the article: Let Gaza live