This is a no-win situation. I blame Hamas for ending their ceasefire (AKA, launching rockets at Israeli civilian areas). What did they possibly think the outcome of that action would be? They picked a fight, now they have it and the people of Gaza will be stuck in the middle. I blame Israel for immediately resorting to bombing civilian targets. I consider myself to be pro-Israel and every nation has a right to defend itself but Israel routinely takes things too far. Their 2006 invasion of Lebanon was a total disaster leaving them less secure and a pile of dead bodies and a destroyed pro-American Lebanese government in the wake of their arrogance. At least they've stopped bombing and are moving in on ground. I blame the people of Gaza for electing a government of terrorists.
I think the best case scenario is that Israel occupies and administers Gaza in an equitable manner for a few years or turns it over to the UN after they've steamrolled Hamas. I suspect neither of these things will happen and that they'll be total jerks if there is an occupation. Hopefully Bush can talk them into leaving after they're crippled Hamas.
Every day I wake up and wonder if today will be the day obama says something definitive, something productive about the conflict. As taking sides in this is not valuable to him and could impact his chances at re-election so I suspect he won't do a damn thing, maybe ask Americans to pray for peace but that will be the extent of it.