Blatham, I am afraid your perception of the Likud Party is based on the obsolete knowledge pertaining to '30s-'40s of the past century when official ideology of this party claimed that kingdom of Jordan was an unalienable part of Israel.
I would advise you to read an
interview of PM Sharon in the Ha'aretz newspaper to get some idea on the stance of the current Israeli government.
Likud has never played the role in Israel similar to this NSDAP once played in Germany, or Al Baath in Syria/Iraq, or CPSU in the USSR: it is one of the components of the democratic spectrum, and it may be removed from power by means of free elections in case of necessity (and such things happened several times in the past).
Of course, you may say that Arafat has also made peaceful statements in English that were intended for the Western audience, while declaring different approaches in Arabic and acting in absolutely opposite way. The problem is that Israel is almost an English-speaking country (everyone here has quite satisfactory level of knowledge of English), and such a thing will not work; more, this interview was originally delivered in Hebrew and appeared in both on-line and printed versions of the newspaper, so Mr. Sharon has virtually no chances to repudiate the things he has told.
I want to add that Ha'Aretz is a left-wing newspaper, the least complimentary to the current government among the all mainstream Israeli media, therefore it is unlikely that it has "smoothed" definitions given by Mr. Sharon. The things that Mr. Sharon has uttered in the interview reflect the national consensus in Israel.
Frankly pseaking, I am pretty tired of these accusations toward Israel that are inspired by uncritical belief to the Arab propaganda; Israeli counter-reasons are being
a priori ignored as irrelevant and untrue. Fair approach to any problem takes into consideration positions of the both sides involved in the conflict.
Israeli public, of course, is strongly pro-American, but such an approach has nothing to do with the financial aid that Israel regularly gets from the USA (BTW, Egypt is the second in magnitude acceptor of the U.S. aid, but public opinion there is much less favorable toward the USA). Jews used to favor the USA since long ago, long before the State of Israel having appeared on the world map. They valued it as a country of equal opportunities with low level of popular anti-Semitism and absence of the state-sponsored one.