As an atheist I don't really have a stake in this fight; however, in any analysis of conflict it is useful to inspect the power differential. A quick comparison of wealth will show Israel at 16th out of 187 countries in the world, and they export 10% of the world's total weaponry. In most trade measures, they do pretty well.
Palestine, conversely, has an unemployment rate around 25%, average income is $1,292.37 per year/per person, and a full 30% of their GDP comes from foreign aid. Their economy limps along, never gaining much because they are preoccupied with statehood, rather than markets.
Even without these statistics, I think it is fairly obvious that there is a vast income disparity between the two groups. This issue confuses and misdirects world perception of the conflict.
Palestine appears to be victimized, while Israel appears ruthless. Palestinians are a conquered people, and theirs is a bitterness and rage that comes from having very little left to lose. To an outsider, we see one people who have lost their land and now live in poverty, and another people who have taken that land and now live in comparative wealth. It's hard not to have sympathy for the displaced Palestinians.
From the perspective of a developed, first world nation, Israel is a more progressive state, despite being controlled by Zionists. There are some wonderful aspects of the cultural experiment called Israel, and I sympathize with the people who have made their homes there. Also, constant, unprovoked attacks would no doubt create a raw nerve in any citizenry, and the radical statements of Hamas certainly don't provide a sense of security for Israel - one that would allow them to be more lenient. I see why they get reactionary. They are between a rock and a hard place.
More than anything I am tired of the killing on both sides, and hearing about it decade after decade. After so much senseless, continual violence I begin to get emotional burn-out. Ultimately, I feel that they should have honored the Oslo Accord in 1993. If both sides had kept their word, it would have been a decent draw.
Since they both insist on hardline, radical, 'all or none' agendas, the situation appears entrenched, and beyond repair. It seems they'd both rather fight than make peace, and because of that I am in favor of withdrawing all support for both parties. If they are intent on fighting to the death, let them, but there is no reason for us to finance it.