I think Hamas' initial attack was wrong, and I think Israel's aggressive retaliatory strikes are wrong.
My concern lies with the innocents (on both sides) caught in the cross-fire. Ambulances and hospitals shouldn't be targets. Citizens should have access to humanitarian aid. This should hold for all citizens, regardless of which side of the fence they live on.
I personally support some kind of compromise, such as the two-state solution models.
Both groups, in my opinion, have an equal claim to the land. Whatever the metric, be it historical, religious, ethnic, whatever...both groups have valid arguments when they say "this is the land of my people". But you can't irradicate the opposing side and expect the world to support you. You can't slay and starve and torture innocent citizens and expect the world to support you.
The only way forward is for each side to accept that the other has an equal right to be there. If they can find a way to live in one country together, and do so peacefully, that's optimal. If there's no way the groups can live together in peace, they'll have to pull an Ol' King Solomon and cut the country in half.
There's no such thing as a good time to start a World War over a property dispute, but this is an especially horrible time for it.
I thought about writing a much bigger piece on this issue (and I ma very well add to this post as the conflict/war develops), but I think this pretty much sums up everything I have to say for now.