Things are going from bad to worse for the Palestine Liberation Organization. Just as it struggles to recover the credibility it lost by supporting Saddam Hussein, the organization has suffered a serious military setback in Lebanon. After its 5,000 fighters near the port city of Sidon were pummeled by the newly assertive Lebanese Army last week, the P.L.O. agreed to stop using Lebanon as a military staging area. The group has now lost its only base within striking distance of Israel.
Until last week's fighting, the Palestinians had refused to follow the lead of most of Lebanon's armed groups and bow...