False premise. I'm only aware of one side of the conflict celebrating the killing of minors. We didn't pass candy around on the streets when children in Gaza were victims. But the Palestinian side HAS done this. And I'm not even suggesting that all Palestinians agree to celebrate our murders, especially those of our minors, but enough of them do (it's in no way a minority that condone it). I can only suspect that those Palestinians find it ok to kill Jewish kids because they don't view us as fellow humans. (This article isn't specific to minors as victims, but it's a pretty recent example of the phenomenon, and the victims were all random passers-by.)
If Arabs put down their weapons, there would be peace. If Jews put down their weapons, there will be no Jews. We've seen that movie before, and our numbers still have not recovered.
As a reminder, the Israeli - Palestinian conflict really is a sideshow in the Middle East. The Arabs have a long history of infighting among themselves, especially that whole sunni v. shia thing, all about who was next in line after muHamad. And given the Abraham Accords, it's further demonstrating that the Palestinians just aren't that important to other Arabs. They were politically expedient in the past.
I agree with Lapid that a two-state solution would be the most viable. It's just a further screwing over of us because it further reduces the land we would have control over and access to our holy places (many of which are in what you'd likely call "the west bank" because much of that was yehudah - the heart of our homeland), but it's a bitter pill I'm willing to accept if it were to be a lasting peace, especially if we could have warm ties. And as a reminder, there's been numerous offers of exactly this to the Palestinians, and they were all rejected. Just a few of the more recent offers: ehud baraq's offer, ehud olmert's offer. They aren't going to get everything they want, nor are we. But after baraq's offer was flat out rejected, I recall another intifada being contrived. Jews aren't going anywhere, and Jews aren't "colonizers". Believe me or don't, I don't have time to go further into the weeds. For a different take, see Fred Maroun's blog postings on TimesofIsrael.com.