I think there is lots of guilt and atrocities from BOTH sides of that confilct but this is not the place to discuss it.
You are right in regards of who's fault it is but I'm here only to explain and trying not to justify my country or anything like that.
here is a short quute from an opinion column that was published a few months ago in one of the weekend news papers:
“What Did the Palestinians Do with Their ‘Marshall Plan’? - Ben-Dror Yamini
“The Palestinians have bought themselves a place of honor on the list of unfortunates in the world. A well-oiled public relations campaign has turned them into a nation of victims. Misery pays. One of the countries hated by the Palestinians the most, the United States, has since 1993 helped them more than any other nation in the world, according to World Bank figures. From 1994 to 2004, the U.S. provided the Palestinians with $1.3 billion, the EU $1.1 billion, and Japan $530 million. In addition to direct aid, the U.S. is also the largest contributor to UNRWA, the UN agency for Palestinian refugees.
“In 1992, the Palestinian per capita GDP was $2,683 per person. If there had not been terror, the Palestinian economy could have grown during the 1990s into one of the leaders in the Middle East. The money was used for three major purposes: perpetuation of the refugees as victims, purchase of weapons and explosives, and corruption. Opportunities to achieve independence and prosperity were rejected for the ultimate goal: the removal of Israel from the map.
“In relation to their numbers, the Palestinians have received more aid than provided by the Marshall Plan after World War II. Since the Oslo agreements, the Palestinians in the territories have received $5.5 billion, or $1,300 per person. By comparison, in the Marshall plan, each European enjoyed only $273 (in today's numbers). Above all, the guilt lies with those who gave these huge sums without having the Palestinians undergo a period of recovery from their futile dreams of the destruction of Israel. The result is, primarily, the continued destruction of Palestinian society. (Maariv-Hebrew, 5Jan)” (Source: Daily Alert, January 8, 2007)