I don't know much about the Middle East but I do know that if Palestine continues with its current tactics it will continue to get fucked over by Israel. Instead of firing rockets I believe it should resort to a much more interesting tactic.
I would like to see them get a bunch of pigs and write a statement on the side of each of them.
They could read "Israel will no longer blow up children" or "Israel will hand back occupied territories". Of course, past experience would suggest the answer to any of these statements is "yeah, and pigs might fly". So they should make them fly...
Just attach balloons to the pigs and let them float over the fence in to Israel. It's brilliantly visual and bound to get far more TV coverage than depressing coverage of rocket craters. It gets a point across and has the added benefit of pissing off the enemy who are not a fan of pigs.
Of course, in America all you would hear about is the animal cruelty aspect of strapping pigs to balloons. Then the debate would be all about whether it was the Palestinians' fault for strapping balloons to the pigs or the Israelis' fault for blowing cute little Babe into a thousand little pieces with their missile defence system. At least that would be more interesting than the current debate.