Well, I don't see how can you call somebody "partially immoral". That conflict was full of hypocrisy and immorality since it started. Both sides had a part in this. It's a purely political conflict usually presented as religious/moral one. Neither Islam nor Judaism (nor any serious religion, for that matter) would define the actions of either side as right. See through all this blasted ideology and religion, and you'll see two dogs wanting the same bone, nothing more. TBH, since Israel is a recently created country, I'd side with Palestinians if they weren't so extremist, since they were there first.
Palestinians want freedom and their own state. Since I come from a recently liberated country (one with a history of being occupied, too), I can understand them. Israel's methods are only a bit different from methods used against Poland, and that's only because the times are different. On the other hand, Israelis also have a right to live, and Palestinians' methods of fighting for freedom aren't very laudable either (though consistent with other freedom fighting movements). Religious fanaticism is a side effect of occupation, but also a result of the times and the fact Israel has a different official religion.
Poland has seen all this, in some form, over 200 years of occupation (and yes, the Catholic Church was one of the most important bastions of Polish national identity). When seen from, say, (Tsarist) Russian perspective, they were fanatical catholic terrorists. There are many parallels between Palestinian situation now and Polish situation before WWI. The only difference between "terrorists" and "freedom fighters" is who's writing about them.
I'd say, Israelis should give up Gaza and West Bank, they have enough other territories. Let Palestinians form an independent country in those areas, even if it means having fanatics rule there. Have UN supervise the newly formed country so that there can be free elections in there (I don't see Hamas getting re-elected after what they've done). As for Jerusalem, it should be made an independent territory supervised by UN and open to everybody, no matter the religion. That way, Muslims, Jews and Christians can access their holy city without being shot at. I don't see this being resolved without UN being involved.