This is bad. Hamas has won most of the district level campaigns in the Palestinian election. The world woke-up to this shock after the previous night had reports of a slight Fatah victory. Currently Hamas is grabbing everything they can in celebration while pockets of Fatah fight in the street.
Why is this bad? Because it extends a series of set backs for peace (or at least progress) in the Middle East. First Sharon has a coma then a terrorist group seizes control of a failed state. It was going to be different... Sharon was making great speed at making permanent borders while the Palestinian government stood by watching unable to help or interfere. Now it seems like a Likudite like Netanyahu will most likely stop the withdrawal from indefensible regions and a hostile Palestinian government will be there snipping along with terrorist attacks.
In the game of global chess the black team has a new pawn. One hopes corruption and inefficient government will bring Hamas down. One also hopes for time.