OK I guess I went a little too far with my simplistic tit for tat approach and I apologize for that. Just reading some propaganda can evoke an angry response in me, not that that excuses it.
@August, fair point. There is evidence to support both views on that argument, but I personally would lean towards yours.
@Penguin, I look forward to your analysis of my ranting kind sir. I'm sure you or MH or Tribesman could tear it to shreds.

In fact I am a little surprised that they haven't done so already.
Regarding the topic, I would humbly suggest in my limited view that if peace is truly the goal, at least 3 things need to be done by each 'side' and these will take time, I will put them next to each other and in order Israel first then Palestinians as they are not allowed to be considered a nation yet if ever :-
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1) Israel must stop immediately building in the contested areas, as these need to be open for negotiation, and continued building directly implies that Israel is unwilling to negotiate these areas.
1) Palestinians must stop immediately all violence towards Israel, and hand over or make known to Israeli authorities, any criminals that refuse to do so for fair trial in Israeli courts. This should also apply to retaliatory strikes by the IDF, as both of these actions are particularly harmful to the peace process.
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2) Israel must start making provisions to relocate settlers in the contested areas into uncontested land, for the same reason as 1) of course, this will take time, possibly decades. It will also cost a lot of money. Setting up charities globally could help with this, and I think the majority of thinking people around today would be glad to help this situation resolve peacefully, particularly nations like the UK who should accept the larger share of the responsibility due to their role in the befuddled slicing up of their mandated territory post WWI but also the USA who should accept their responsibility for the massive immigration of Americans into the newly formed state of Israel post WWII
2) Palestinians must suppress the infighting and contradictory stances of the hard line Hamas and Fatah groups, though if 1) is achieved I would assume (perhaps wrongly) that this will no longer be a problem, and elect a unified political leading group that represents ALL Palestinians in view of negotiations and the possibility of becoming a real nation at some point in the future.
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3) While Israel is still the governing body in the contested areas, all peoples currently residing within them of legal age should be given the vote on Israeli politics, until such a time as Israel renounces its governing authority completely in said zones, in view of completing point 2).
3) Palestinians should continue to protest any unfair treatment by Israeli authorities (in their view) en-masse in a peaceful way, avoiding antagonistic behavior such as rock throwing etc. use modern technology to record these events, for future analysis and global education. When the world is watching the hard liners on both sides will find their spheres of influence shrinking fast.
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That would be a beginning. I tried very hard to be fair with this, here in the UK we see a lot of media simply covering the violence, also a lot of documentaries sympathetic to the Palestinian viewpoint. There really are not very many from the Israeli side and this tends to make people think that the Israelis are lording it over the Palestinians in every which way, coupled with the violence, and the British tendency to support the underdog, and you see where a lot of us outsiders get our prejudices. Again not excusing it, simply stating how I experience it. If more people were recording the actual events particularly from the Israeli side, it would be easier to make sure for instance that Palestinians in Israeli courts get fair trials, and violent criminals could be easier identified, abuse of human rights could be prevented etc... I really don't want to get into a debate about it, but to finish I must add, religious extremists on both sides do nothing to help and should be silenced, as a priority. On this point I provide a link to one of few documentaries from the Israeli side, and I must also warn that the Israelis in it are the true believers as it were, and should definitely not be taken as representative of Israelis as a whole. I would appreciate if someone could point me to a source of information not solely based on examining the viewpoint of the hard liners as I said, I have spoken with Israelis who agree that their government and the IDFs policies and actions regarding the situation are wrong, but thus far this is one of the better docs I have found.
http://documentaryheaven.com/louis-theroux-the-ultra-zionists/