Well Nashwan, not too surprised to see that you haven't changed your mind about Israel's "illegal" occupation of non-sovereign territories captured in war.
Quick question: What, pray tell, are you Tommies doing in Basra? Did you have missiles falling on Cardiff like we do on S'derot and Ashkelon? No, you say?!?
I would have imagined that three years ago or so you would have lowered your flag of Wales to half-mast to identify with the Iraqi Shi'ites you've occupied, who were/are the citizens of a sovereign nation. Or, perhaps you have a different opinion about the UK and Basra? Hummm, what's that saying, "He who is without sin, let him cast the first stone."
By the way, I read the article from Ha'aretz that you cite to compare the indoctrination to Shahada encouraged by the PA to what's going on in Israel. Tsk, Tsk, mate, not a very convincing article for your cause. Two Israeli kindergartens were found, by surprised parents, and without sanction of the Tel Aviv municipality, to have encouraged marching, saluting, playing with toy swords, etc. Hardly the PA's inculcating the love of death by martyrdom indicated by the articles cited above by PMW. Moreover, if Ha'aretz quoted Israelis who said, as you say, "kill as many Arabs as possible.", "For me, kill at least 10" and "Ignore the laws and spray them" then Ha'aretz did it precisely to warn the vast majority of Israel about the dangers of the radical right. Mate it seems to me that you pull fringe comments to compare with what the PA itself sponsors in the media.
This morning on the way to work I heard a radio interview on the popular show of Gabi Gazit with one of Israel's Arab Knesset members and an Israeli Jewish member debating the pros and cons of the bill that would outlaw open support or contact by Israeli parliamentarians with known terrorist organizations (Hamas). How 'bout that, open debate in Israel about contacts with terrorists. And up till now the Arab Knesset members can contact Hamas with impunity.
One other thing. BeTzelem that you reference is a Hebrew word for "In the Image (of God)" and comes from the book of Genesis. Israeli Jews and Arabs and others make up the organization with this name and focus their work on the territories. Imagine that, an organization in Israel that is extremely critical of many aspects of Israel's government policy. Wonder if Mubarrak, or Abdullah, or Assad, or the Saudies, or the Iranians,
or even the PA, would ever let their citizens form a watchdog organization that levels severe criticism against their respective regimes, maybe, for example, with respect to their treatment of indigenous minority Christian and Jewish populations.
I would nevertheless agree with your comment,
"The whole situation is a lot more complex than Israel = good, Palestinians = bad. Whilst that sort of attitude prevails, peace isn't very likely."
But I would add, that when someone on the left like Shimon Peres who has gone the extra ten miles for the sake of the Palestinians can say, "The Palestinians never miss an opportunity to miss an opportunity," then perhaps there are not a whole lot of options available to Israel, especially when Hamas refuses to acknowledge the very existence of Israel.
Best regards mate.
Cement
P.S.
The charitable organizations listed by the Washington Report do not inspire a lot of confidence about an objective viewpoint regarding Israel.
http://www.washington-report.org/charorganizations/index.htm 
