This is an important point. Its easy to view the conflict as every Palestinian being a rampant, militant, rocket launching, Jew hating fanatic - but given peaceful conditions the majority of people are typically happy to live in peace.
The current Israeli offensive is more institutional in that its a government military offensive - i.e. theoretically not an operation of fanatics - which is why its extremely dissappointing that there appears to be such careless disregard for the killing of innocents, but the majority of the Israeli people will also be content to live in peace if Hamas would stop launching rockets at them.
The fact that the supposedly responsible/moral (i.e.'non-terrorist') Israeli government has also been guilty of fairly aggressive behaviour in relation to settlement developments and restriction of movement/access in disputed areas - and again typically with little regard for human life - does help to increase the proportion of fanatical, Jew hating, rocket launching members in Palestinian society.
Excellent point.