Kaitie - what peace agreement are you referencing that Israel is violating?
If 8,000 rockets launched at civilians since 2005 - 800 just this year - if this does not justify Israel's reaction, what in your mind would?
As for agreements, the most recent off the top of my head was when peace talks were going on before and Israel agreed to stop building in the settlements (which are illegal, btw) in order to show good will. Not long after Israel declared that they were increasing construction and actually kicked Palestinians out of their homes to build.
Here, let me give you a direct quotes in relation to this:
2009: Netanyahu says in a statement to Obama during peace talks: "... we have no intention of building new settlements or of expropriating additional land for existing settlements." That lasted six months before they started new construction projects.
Just this summer, they called for 300 new homes to be built in the West Bank. Note that this is land that they do not, under international law, legally have the right to build on at all. They illegally claimed the land in 1967 and have been forcing Palestinians from their homes since.
Imagine now that a bunch of Canadians crossed the border, said "This is ours now" and bulldozed American's homes without permission and continued to do so for forty years illegally and tell me how you'd feel about that.
It's often been (reasonably, I might add) a condition of peace talks that Israel should stop construction in the settlements until some sort of agreement can be reached. Israel refuses or continues regardless of what they say.
There are more issues. Water consumption, of which the vast majority of shared resources are used by Israelis, for one. The blockade on Gaza caused dozens of problems. Industry in Gaza was completely decimated. The unemployment rate was up around 80%. They were incredibly poor with no industry, no incoming goods, and completely shut off from the rest of the world. Israel limited the amount of electricity being sold. They controlled (and still to a large degree do) everything that went into the country. No construction supplies. Food was limited (and by some accounts intentionally kept below required calories to survive).
Now let's consider the number of direct fatalities. You argue that the shelling is reason to do the current raids, but every single year the number of Palestinians killed is much higher than the number of Israelis. That includes counts for children. Palestinians under 18 are always higher than those in Israel.
Here's a graph to show you some numbers. Ironic that the one with fewer casualties is somehow seen as the greater victim.
This also doesn't consider the fact that Israel uses much more deadly (and not acceptable under international law) weapons. In 2008 when the Gaza War happened, Israel was using white phosphorous, which isn't permitted by international law because of the horrific damage and burns it causes. They denied using it, and then after undeniable proof came out, admitted to doing so.
So what would it take for me to say it was acceptable for Israel to go into a full-force attack? Gaza having anything like an equal footing military for one. Israel not actively stoking the conflict. Israel not actively threatening first-strike attacks on other countries.
Israel is not the victim here. I have yet to see any evidence that shows that they are.