Israel's response in Gaza seems grossly disproportionate to me. As I see it, Israel has two ways to go with the Palestinian problem: (1) do justice to the Palestinians, or (2) wipe them out or drive them away. It looks as if Israel is taking the latter course. Under cover of widespread and inflated fears of Islamic extremism and terrorism and American fundie Christian's lusting for apocalypse today, the Israeli government reckons it can do just about anything it wants to its Palestinian subjects.
It seems to me that Israel's overtures for peace have not been made in good faith. Settlements continue to encroach on the occupied lands, and Israel keeps demanding that Palestinians acknowledge Israel's "right to exist", whatever the hell that means. It appears to mean that the Palestinians must acquiesce in the existence of the state of Israel in the exact form it is today with all its policies and aims and agendas unchanged. The best way to manifest this acknowledgement and probably the only way Irael would accept it would be for Palestinians just to go ahead and kill themselves.