Cutting off aid to Israel would be more likely to produce bad than good. Don't forget that Israel, if it felt threatened, has the means and likely the will to turn the middle east into a glowing cinder. Some portion of that money is maintaining leverage over one of the largest nuclear arsenals on the planet.
It isn't about Israel as much as I sympathize with your point-of-view. Rather simply it is the fact that both groups, Israelis and Palestinians, hate each other more than they love their children.
Expecting the tribal societies of the Middle East to grow up and behave like nation states is nothing but wishful thinking. As much as I've much I dislike about how the tribal societies of the Americas were tamed, or the way the Europeans did it to themselves ... the sad truth is that not a single entity in that region, save it would seem Iran, has learned the lessons of history. And I'm no fan of the wacko's running Iran.
