Israel's surrender = the end of terrorism?

Apparently, according to comments by the Pakistani president, terrorism in the Middle East would probabl stop if only Israel could be persuaded to give up more land on the west bank to create yet another Arab state. In fact, President Musharraf claims that not only would this concession create feelings of peace and friendship in the Middle East, these feelings could extend the world over. He feels Israel has done well so far in evicting Jewish citizens from the Gaza Strip, but that there is still a ways to go. This story by a Ryan Jones of the Jerusalem Newswire details his words. However, I would say that this is an over reductionism, simplifying the issue beyond what is acceptable; it is a complicated issue, and although the Israeli conflict is a part of it, terrorism in the Middle East stems from other sources. These include the American occupation of Afghanistan and Iraq, other forms of racial hatred such as between Sunni and Shiite muslims in Iraq, and the hatred by some for capitalism in any form.