Yitzhak Rabin's killer and the suicide-bombers knew exactly what they were doing. They timed their attacks to disrupt and destroy the whole Peace process. The sad fact is that it worked. The Peace plan actually had support in Israel until a few months before the election. What the Likud and their supporters don't understand is that terrorists aren't the majority of the Arab world.
Peace makes sense because that is truly the worst enemy of the terrorists.
In the old days, to defeat an enemey, you need to slaughter a substantial number of their army and destroy their morale. It's not necessarily effective but they can keep the imbalance they want. Then again, you might also argue that this was part of what brought Israel to the Peace process in the first place. Yitzhak Shamir and Shimon Peres were brave enough to deal with this problem and knew something was wrong. The sad conclusion may be that the majority of Israeli voters didn't learn anything from the Holocaust.