It seems to me that both sides only ever offer the stick; never really offering the carrot. Neither side is willing to comprimise enough to allow the other to get any really benifit from peace. This is in part that both sides have come to power through war and death, (hamas also provided basic services). Both parties need to appear the bigger, strong (read most stubbon) then the other.
I think in order for gaza to be furthered the answer lies in the west bank. with a moderate in Abbas it would seem to be the best option to give the west bank the carrot to balance out the tic for tac in the gaza strip.
The real answer is not countless cycles of bombing each other; so what is the best way out of this mess now and what should the sides be doing.
The true test of a man is not at his great moment, but at his weakest point. -me
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