I was taught in school that Israel was created in 1948. It took me a long time to realise it wasn't just some vacant land no-one wanted... the Jews suffered horribly in World War II, and I entirely understand why they would want their own state, but at the time, everyone should have thought through the consequences of bringing Israel into existence. What we are seeing happening today is the legacy of WWII and how we tried to make things better, and couldn't...
I agree that if the state of Israel or those in charge of it are responsible for atrocities they should be sanctioned or held accountable in the same way the Palestinians are. Both have been at fault before now.
One thing I would say is that around 500,000 Romani or "Gypsy" people died in the Holocaust too and were systematically targeted by the Nazi regime (though not to the same level and with the same deranged desire for extermination as the Jews), but they do not have their own state, and still suffer prejudice. This is not an argument that Israel should not exist! - simply that it was not only Jews who perished in the Holocaust (though they were the largest group) and some groups, most notably the Romani, have not been able to improve their lives and situations in the way many Jewish people have e.g. by being a part of their own nation.
We should not forget the suffering of anyone under the Nazi regime, but we should not forget that it was not just Jewish people the Nazis persecuted. We also should see that there have been many other incidences of racism, persecution, genocide etc. in the world, some in very recent history and some happening right now. If we say the Jewish Holocaust was unique, and that Israel must exist because the Nazis' "Final Solution" for Jews was so particularly evil in an unprecedented and unimaginable way, then it is a very sad truth that we are blinding ourselves to the evils that have happened and continue to happen all over the world - including in Israel.
We should not allow the fact Jews suffered under Hitler to blind us to things going wrong in Israel in 2003. I am not Jewish, although some of my ancestors were, and I fully recognise that were I Jewish I would not doubt feel that Israel had an absolute right to exist, but I cannot help thinking that things were handled in the wrong way. I guess I don't know how else it could have gone, though...