At the Rome ICANN meeting in March 2004 I'd the pleasure of having lunch with the new manager for .ps -- the ccTLD delegated to the Palestinian Authority. The existence of "ps" and "eu" in the ISO 3166-1 table are the odd stories of the two useful "non-country" entries in iso3166-1 (there are lots of uninteresting and marginally useful "non-country" entries in iso3166-1, basically, any place where a "post office" ever existed and a British stamp dirtied with ink, or the equivalent colonial power, has a 3166-1 entry, along with a dozen "intellectual property" non-state entities), and both have been delegated, allowing the ".eu" gTLD registry, and the ".ps" ccTLD registry to exist.
If the US has to unfund UNESCO because of Congressional NeoCon Caucus brain-damage, I suppose all that is protecting the IANA root from being swept overseas is the fact that the contract is a no-cost contract.
Timely reading is Juan Cole's comment on the UNESCO vote, and the consequences of US ... unfunding of bodies that do ... recognized (or resolve) Palestine (or DNS A records in the .ps namespace).
Later: PalTel has been targeted by a distributed system today. A circa 2006 description of the Palestinian IT sector is in this piece from Al Jazeera English link.