There is an article written by a pundit who often covers Israeli matters, who recently offered the opinion that Ariel Sharon changed his stance from that of opposing a Fakestinian State, to one of being in favor of it.
Sharon's reasoning, according to this journalist, was that as long as Judaea, Samaria, and Gaza were accorded "disputed territory" status by "The International Community" and considered "Occupied Territory" by the UN, Israel would be obliged, as "occupier of territory taken during war", to care for and be responsible for the welfare and "human rights" of the human population under her control.
Therefore, according to the article, Sharon wanted to expedite Fakestinian Statehood, after which Israel would be "free" to obliterate a neighboring "sovereign" state which committed aggression and acts of terror against the State of Israel.
Personally, I do not ascribe to this way of thinking, but there is some merit to it in terms of "International Law" governing the administration of lands seized during wartime.
I have no doubts that "The International Community" would only scapegoat Israel even more than it already does so, should she annihilate a Fakestinian State.
So, why not just go ahead and deport / annihilate the terrorist populations NOW and get it over with!