Sweeping victory for who?

Can any democratically elected government be un-palatable to US? Looks like the newly elected palestinian govt. is going to be formed by Hamas, which is considered by the US govt. to be a terrorist organization. The US policy is that they don't negotiate with terrorists. Is it OK to work with a democratically elected "terrorist" group? Will Hamas modify their ways to match the requirements put forth by US et. al. and give up their militant branch. Lets wait and watch.