Man, I think the saddest part of this is that we have entire societies that measure their self-worth by their own perceived level of victimization. One of the biggest head-butts I see in the Middle East is that a lot of Israeli identity has gotten caught up in Jews being the world's whipping boys. Then you get Palestinians who have their own legitimate argument for how many of their own kind have been treated with the same persecution at the hands of these so called victims.
What you get is almost this escalation of victimhood... "My people have been slighted and suffered more than you" horse crap. That mentality is always destructive for all parties involved. It's negative, self-defeating, combative, and dwells in a very hopeless state. IMO, it's that attitude that is one of the many things that is holding back the economic and social advancement of some races in the U.S. even.
What really interests me is how issues of past offenses and crimes against humanity were handled in places like South Africa, Rwanda, etc. (To some extent, and some there can correct me, I believe this is happening in parts of the former Yugoslavia.) In many of these places, people have taken the approach that the only way for everyone to get past things and move to a better place is to acknowledge the past but to move on. Rather than prosecute all the war criminals, there's almost a cathartic renewal of the social consciousness by acknowledging and trying to move on past grudges and old, built-up animosities.
It's hard to forgive, and it sounds too simplistic to do so because it's very difficult. But some places are doing it and, IMO, succeeding because of it. I don't know if something like that is a feasible answer in Palestine and Israel. But there are examples in the world to prove that the situation isn't completely futile and hopeless for humanity.