Yes he is a terrorist, yes he will be alive. Now, what the Isrealis need to do is clear out as many terrorist cells as possible., start moving their citizens out of the settlements in the West Bank and Gaza, start dismantling the "refugee camps" and disperse the Palestinians living there, help set up a viable economy, then pull out to let the Palestinians have their own country. The Dome of the Rock or Temple Mount or whatever you call it should be completely destroyed (maybe by Hindu or atheist or someother relegions workers)and the remaining dust should be scattered (people shouldn't loose their lives for "holy sites", "holy sites" should be destroyed to save people) Jeruseleum should be split. A population that is working and has enough to provide for their families is less likely to be discontent. Post is a little disjointed but I'm sure you guys get my jist. Just my perspective, that will never come to pass.
