But this...

...on the Palestinian side, the use of terrorism that hardens the hearts of Israelis and challenges their democratic instincts, and the teaching of hate and anti-Semitism to their children.  

The use of terrorism? If by that you mean the intentional killing of civilians, then I suggest you look up a recent diary of mine, featuring an article by Lawrence of Cyberia concerning Israeli state terrorism, the intentional killing of Palestinian civilians including children by IDF, which you forgot to mention. Most of the killing on both sides is actually retaliatory and has no political or religious intent.

Regarding the "terrorist" meme used in relation to the Palestinians, please see Peace, Propaganda, & The Promised Land to get up to date on the latest US-Israeli propaganda effort to turn Israel into a victim of terrorism after 9/11.

As for the dumb charge that Palestinians teach their children, through textbooks, hate and antiSemitism, another diary from Lawrence of Cyberia put the "Palestinian textbook" claim that Hillary Clinton actually brought up in the Senate, to rest. It is false. On the other hand, I would not doubt that a people resisting and fighting against a military occupation while their homes and lands are being confiscated, the rest of their country colonized, would not teach their children to become fighters at some point in their lives. Afterall, it is not difficult for a Palestinian to see their enemy daily in the form of soldiers carrying rifles and running around in tanks and jeeps menacing their nieghborhoods.
The expectation that Palestinians would just take their military occupation/colonization passively is just as absurd as to have expected the French or Italian resistance not to be more welcoming of the Germans during WWII.

Somehow, through language, censorship, and propaganda, we have learned to talk about Israeli war crimes against the Palestinian people in the West Bank and Gaza as if they were heroic acts of a people under threat, fighting for the very "existence" of their country. The Existence meme of course is just an extention of the victim psychology we have been treated to these past several years. It is all bullshit.