This nefarious game of tit for tat will keep rolling on for the foreseeable future. Though I do not excuse Islamic fundamentalists I believe Israel bears the responsibility in this conflict.
Lets face it, Israel is a nation with one of the most highly sophisticated and advanced armies in the world, they have the best missile defense system and probably 300 nuclear weapons.

They keep the Palestinians in an open aired prison, under sniper towers, with humiliating check points and an economic blockade which has destroyed their livelihood. It's not the other way around. The Palestinians fire rockets at their oppressor. If you were in their shoes you would to, look at the IRA for example.

The first step in solving this conflict would be to recognize Palestine as a legitimate state and lift the embargo. As long as Israel and the US continue to stop this, it will never be resolved.