It is awful for everyone, but I particularly feel for the children in Gaza. Israel could resolve tensions if they were prepared to hand back some of the control of the west bank that they seized in 1967. Currently far more Palestinians live in the west bank than Israelis (3 million v 600,000), yet Israel occupy it and control the movement of Palestinians within it. The UN and most international communities believe Israel's occupation to be unlawful. They have separated the Palestinian nation into Gaza and The West Bank, trapping those in Gaza. Those in Gaza are only allowed to enter the Westbank for emergency hospital treatment, but not other important events such as attending a wedding or funeral. As such they are unable to form relationships with other Palestinians in the West Bank. Israel for all intents and purpose occupy Gaza. They control its air and sea space and bridges. They hold control of all their utilities (electricity and water). They have seized land to create a buffer zone between the two countries. Gaza is the 3rd most populated country on earth and the conditions there are awful.
That's not to condone terrorism of course and they have a right to defend themselves, but unfortunately, due to the high density of Gaza, the impact of any attacks is always disproportionate and so many children have been killed.
There is no longer support for a 2 state solution on either side (only 40%ish in support on either side). People have lost hope. And largely, it would involve Israel handing back control of the Palastinian section of the West Bank that they currently occupy. In fact, the two state solution is pretty much the plan that existed before the 1967 war. And the Palestinians have been so riled and suppressed for so long that there is growing support for them seizing back a greater proportion of the west bank going back as far as the sea.
The only solution that I can see is for Israel to hand back land back to the Palestinians and see if that starts to calm tensions and lift travel restrictions within the west bank. I don't think unfortunately that they can lift restrictions in Gaza for a long time yet, having poked the bear far too many times and for too long. They could however, move some of their buffer zone back in places and provide more humanitarian aid to those in Gaza or allow some vulnerable families with young children into The West Bank or parts of Israel and gradually get some onside.
Instead however, they have a bullish Prime Minister intent on war and the backing of the US.