Of course they're all being shit heads. Neither side's leadership has shown much reasonability. It's the prisoner's dilemma, neither side believes the other will work with them. The reason I think Israel has more of a claim of responsibility is that they have the CAPABILITY of significantly changing the situation of the area. They have a potent military and fair resources to bring to bear.
If the palestinians somehow convinced everyone to become peaceful, it would take decades for any noticeable change to come about. If Israel stopped the insanity and then, I dunno, worked on building up a west bank/gaza infrastructure and economy, the change would start in a matter of A decade.
The long and short of it is, 99.9% of people everywhere just want to live their life in peace, eat dinner with their friends and family, and have some cool parties/weddings/births. If these simple desires are taken care of, it's amazing how little extremism will take root.
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Hoocha, hoocha, hoocha... lobster.
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