Right now everyone is in everybody elses pie, face, space, however you want to put it. Hamas can think it is forcing withdrawals--it has a limited ability to determine to where: Olmert can say this or that or over there will be permanently part of Israel: ditto for his ability (or Bibi's or whomever's) to make it stick. That's just the way it is for now--my gut is that a "border" nearer in is easier to maintain than "further out"--but there's a heap of haggling down the road and neither "unilateral" borders or "not giving an inch" will prevent Hamas from being annoying if it chooses to be. Everybody on all sides right now are real human beings who have free will--they aren't just bogeymen in each other's heads.
Palestinian man suffers light wounds from rocks thrown by Jewish men in Jerusalem (Haaretz)
from the article: Peres balks at Olmert's plans for further West Bank pullout