Palistine is not a nation according to whom? According to them they are a country fighting for Palestine, and Israel does not exist. Don't be to quick to label people as terrorist, one mans terrorist is another mans freedom fighter and a soldier. Both have the power to fix the situation them selfs, therefore both carry the responsibility to fix the situation equally.It's clear both sides are to blame. No one is questioning that.
Israel however continually escalates the situation with attacks like these and mass civilian casualties. Locking up your enemies, starving them and then attacking them when they lash out isn't going to lead to peace. They are a nation. They need to rise above the terrorists, not stoop to their level. More is expected of them as a legitimate nation.
If the Palestinian government was attacking Israel with organized armed forces, it would be a different story but they aren't. A terrorist group is doing the attacking, yet the civilians are the ones paying the price.
edit: spelling.