Well, I guess this is really a pointless discussion when it comes right down to it. You believe Israel is in the right and I think both sides commit atrocities. Makes it all the less surprising that they can't come to an agreement when two people detached from the situation can't come to an agreement. I have no personal stake and it seems to me that Israel routinely commits atrocities in response to Palestinian atrocities. I presume you have no personal stake, and you see legitimate actions from Israel.
One final thing I need to be clear about - I get the feeling every time I have one of these discussions that to suggest Israel is just as bad as Palestinians is the same as saying suicide bombers are justified. IMO, this "you're either with us or against us" attitude is dead wrong. I have no problem with Israel defending itself - it's when it pursues policies that kill more civilians than militants I have problems. I just read an article saying Israel has killed 2.5 innocent civilians per day since 2000 - I don't care what 'good intentions' you ostensibly have, this is wrong. I think Israel has successfully shown that the Bush doctrine (pre-emptive strikes, military solution) cannot work short of widescale massacre, and steadfastly walking down this path insisting you are in the right the whole well down is pretty thickheaded.
Edit to add: Not even all Israeli soldiers feel they are justified. There has been a growing movement in Israel that suggests the occupation is corrupting the entire country. Here is one link - there are many others.
http://www.jppi.org/islam_online_4_5_02.html