Moderate Palestinians are not seeking a homeland that requires the expulsion of Jews, much as moderate Israeli's respect the aspirations of the Palestinian people. Palestinian extremists on the other hand want nothing more than the complete destruction of Israel, in much the same way as Israeli extremists desire the complete expulsion of the Palestinians.
It just seems so clear to me that regardless of how they got there, they are both stuck in the same place - they are both trapped in an endless cycle of violence, they are both held hostage by the call of extremism and they both have only one way out.
Unfortunately for the Palestinians, their extremists are called terrorists because they cannot afford tanks and fighter jets and helicopter gunships, and so America further perpetuates the endless cycle with it's one-sided support, both because of the terrorist connection and because of the iron grip of the conservative Jewish lobby on foreign policy.