To somehow try to put the blame for the suicide bombings on Israel is just as sick as to blame a rape victim because she was wearing a short skirt, and should know better than to walk alone at night.
Nashwan is correct, the violence will continue. In fact, the entire palestinian population in the age group 5-50 is "lost". These people have too much hate, and they will keep going as long as they can. As long as there is one Palestinian demand left, there will be more attacks.
Israel cannot negotiate her way out of these attacks, simply because she cannot meet all the Palestinian demands. In some areas it would be suicide (water rights, refugees) in others it is unthinkable (settlements, Jerusalem). There is no political solution to this conflict. That leaves us with a military solution.
The short term goal must be to prevent further attacks. Continued attacks against the Palestinian infrastructure and command chain can probably be expected. These attacks work very good. (And if you had bothered to read anyting about the conflict Staga, you would realize exactly how much the Israeli offensive has done. The Pal "government" and the terrorists cannot survive another offensive like that.) During the latest offensive, several high ranking terrorists, including Arafats second in command, were either killed or captured. Several bomb factories destroyed (and note that The pals only have 6-10 skilled bombmakers). And hundreds of terrorists neutralized.
Since there are thousands of volounteers ready to strap on explosive vests, the problem must be attacked from another angle. The Israelis will continue to kill off the Palestinian leadership, a tactic that has worked extremely well. It does not completely stop bombings in itself, but it drastically reduces the effectiveness of each bomber. Instead of attacks where two or three bombers strike at the same target, one against civilians, and the other one against the rescue personnel, there has been alot of bombings or bombing attempts where the terrorist seems to have been more or less "winging it". These improvised attacks are normally prevented, or result in minimal loss of life.
I also think we will see more walls and fences built around Palestinian towns. I think the Israeli tactic is to strike at the terrorists from two directions. One is to kill off their leadership, destroy their infrastructure (and here, the terrorists and the pal government has been proven to use the same infrastructure) and generally try to cut the head off the organizations. The other direction is to seal off the palestinians from Israel. Build walls around them, fill the streets of Jerusalem with soldiers, enforce curfews, take away their mobility etc.