I think you've focussed too much on this one point.
Well you raised this point specifically so I addressed it specifically. I would agree however that funding alone cannot possibly decide the issue.
Perhaps you'll agree with my (and to some extent the article's) contention that simultaneously cutting off money, targetted assassinations of leadership, and restricting access (the fence) has had some effect.
[edit: The problem I am having is seeing what you are getting at. You don't believe that the Palestinian terrorist groups have gone to Iraq, you probably don't believe they have given up or 'taken a vacation'. You don't seem to believe that a lack of funds could slow them down. What do you think has caused the slacking off of violence?
Actually I would agree that the wall, assassinations etc are very likely to have had a significant effect but it is quite impossible to say if the effect is going to be long term. Going back to the funding issue my point was that terrorism whether national or international can achieve a great deal with an amount of money we would consider trivial (well by military standards) and accordingly we shouldn't overemphasise the likely effect of cutting funding.
The wall and the targetted assassinations were supposed to enrage the Palestinians and increase the cycle of violence, according to some...]
Well they certainly have enraged them if it is possible to be more enraged than they were already. The position of the article seems to be that if you retreat behind the castle walls for safety then you can declare the war over and forget about the enemy at the gates. Doesn't usually work like that though. It didn't work for the crusaders who after all were a highly militarised society who built excellent fortifications. The fortifications remain; The crusaders don't.
So then you agree with me, then? 
I think I've covered that above. Even without the wall/assassinations/funding reductions I suspect that militant organisations supporting the palestinians might have diverted some of their efforts to Iraq. After all why shoot the monkey when you can shoot the organ grinder?
Perhaps there will be, but my question is whether the intifada is over. This particular stretch of the conflict began in 2000 (after the Camp David meeting failed or after Sharon went to the Temple Mount, depending on one's biases) after a stretch of relative quiet.
The first intifada was from 1987-1993 and the end came about with the signing of the Oslo peace accords.
The honest answer is that no one knows. In my opinion this is merely a lull in the violence of the Intifada. For it to end would require a change in the political climate, e.g. as a first step the replacement not only of Sharon and his cronies but also of Arafat and his cronies.
Neither here nor there, as regards my question about the state of the intifada.
You don't think that a popular and violent nation resistance movement gains moral authority in the eyes of its supporters when related movements flourish in neighbouring nations? If you are trying to recuit impressionable young men then the argument that they are part of a culture wide resistance movement against the U.S. imperialism, crusaders etc, etc, is a powerful propaganda tool.
In other words arab and moslem anger aroused by Iraq probably contributes to the mentality which sustains the Intifada.
MattJ