Check the numbers. In 2009 Israel killed 1034, Palestinians killed... 9!!! That's around 115 for each one Israeli killed. That's genocide, not retaliation. And it's done with US military jet fighters and tanks, that Palestinians don't have (talk about terrorism!)
Let's look at it simply, Israel has the land, settlements in Palestinian territory, denying right of return and controlling East Jerusalem. All of which are Palestinian rights according to the UN. Give them back and whine all you want about terrorism to the world, until you do, any attacks on you are legitimate. And your retaliation is nothing other than trying to subject a free people to surrender their rights, which they never will.
Genocide? I'm sorry, but that holds no water at all and is plain insulting to the intelligence of this community. A genocide is the deliberate destruction of at least a significant part of a people. Your numbers (if they are even true, I see no sources) do not in the slightest support that.
You really do the Palestinian position no favours by claiming absurdities.