Arafat's resignation would be a bold move, and put pressure on Israel
A fresh PA leader could make real, credible committments to fighting terrorism, and the Israeli government would be under real pressure to reciprocate in turning occupied land and control over to the Palestinians.
Unfortunately, his resignation is highly unlikely, imho. Losing power and control could potentially lead to damaging revelations on the Palastinian Authority's and Arafat's many acts of corruption, embezzlement, illegal arms-dealing, etc.
What is clear is that American political leaders are quickly running out of patience with the PA:
No US envoy until the PA takes terrorism seriously