So because you can imagine a scenario where a hypothetically toothless Israel gets pushed into the sea by a hypothetically powerful Hamas while a hypothetically disinterested and anti-semitic worlds lets it happen, everything is fair game until you can stop imagining it? Just because sections of the arab world have expressed a fondness for this kind of nightmare scenario, doesn't mean that any let up in your relentless war against a tiny populous will immediately open the floodgates to it's inevitable reality. Or that diplomacy (or even just a less aggressive bombing policy) equates to a wholesale shriveling of Israel's power.
What exactly is it you expect the Palestinians to learn from this? Fear? And what exactly do you think this continuous policy will foster in the next 50 years? A new generation of Palestinians who appreciate and respect this fear, with absolutely no inclination to fight against it?
Nothing will change unless both sides can empathise with the other, and not see everything through the blinkered prism of Nationalism. You included. You can't claim to be the more progressive and civilised society if you refuse to be the one to start this.
So what's to be done? Continue to kill these children and feed into Hamas's hands? Do you think this current policy is helping Palestinian children see the error in Hamas, or the righteousness of it?
Keep punching the scrawny kid in the face until he realises his brother throwing apples at me is the real enemy. Usually works. Those apples would really hurt if I took off all my apple protective clothing stood much closer to him. Which is obviously what I'd be forced to do if I stopped punching.