The starting point for peace is when each side decides to make difficult choices. Who is to blame here is irrelevant. In my mind, Netanyahu and Hamas/Islamic Jihad represent extreme positions for both sides. 

The key to change is the Israeli electorate. As long as the electorate perceives Palestinian groups such as Hamas as an existential threat, Netanyahu or someone like him will get elected. Demonizing Israel in the UN or elsewhere guarantees no change from the Israeli electorate's perspective and further reinforces the development of a fortress mentality. That means no change for the Palestinians regardless of what the UN, you and I think.