WASHINGTON, D.C.: As if the wrath of Rudy and a terrorist bomb plot weren't creating enough heat for the U.S. Immigration and Naturalization Service, a federal advisory panel now wants to abolish the troubled agency, dividing its duties between the State and Justice departments. New York City Mayor Rudolph Giuliani continues to escalate his feud with the INS over its release of a Palestinian asylum-seeker who last week was charged with plotting a terrorist bombing in Brooklyn. Police sources say evidence includes a note threatening a series of attacks on American and Jewish interests. Meanwhile, Congress is embracing the U.S. Commission on Immigration Reform's proposal to abolish the INS, as state officials complain that the agency is unable to keep criminal aliens out of the country. Not surprisingly, the INS is gearing up to save itself.