So, we are not that far away from each other. I believe that both have a right to exist, both should have their own defined lands and both should then leave each other alone. I honestly think that the only people who do not believe that are the extremists on both sides.
To answer your question and perhaps where we will differ. I believe that Israel, if they could, would put the name of every Hamas member on a bullet or bomb and send it. i.e. They would kill every Hamas member and leave the rest of the innocent Palestinians alive. I also believe that Hamas would not bother putting names on their bullets and bombs and just send their bullets and bombs to kill Jews any Jews. So I do see Hamas as the greater evil but likewise I fully accept that Hamas can never ever be totally wiped out and that the continueing bombing of Gaza has moved into outright cruelty. The increasingly small number of Hamas members being killed can no longer be justified against the number of innocent civilians being killed (remember also that Hamas has deliberately embedded themselves into civilian areas so that if a Hamas member dies almost certainly innocent civiliams would die too, that is by Hamas design for PR purposes). Essentially I see this war/battle as over militarily and the diplomats need to take over and negotiate. So I see the Israeli administration as now drifting into Hamas like behaviour but no where near the level of depravity of Hamas (yet).