After Ariel Sharon pulled Israel out of Gaza two years ago, Israel didn't get the security it wished for; the daily shelling of Israeli towns continued and even intensified. However, he did succeed in transforming Gaza from an Israeli headache into a Palestinian problem. "The American strategy has totally collapsed," Israeli officials said this week. First, they carried out an exercise in democracy, and that led to the election of Hamas. Then they abandoned democracy and tried to arm Fatah operatives in Gaza so they would fight Hamas. This approach didn't work out very well, either. The next step will be to isolate Gaza and hope to prevent the internal struggle from spilling into the West Bank. The one idea no one in his right mind is taking seriously this week is the old formula of the two-state solution that will solve, once and for all, the "Palestinian problem."