Both Hezbollah and Hamas hide their weapons in residential areas, under schools & hospitals, and various areas guaranteed to cause lots of civilian deaths if Israel attacks their leaders or weapons.  I'd argue that is a much greater evil than Israel defending itself and even sending out warnings to civilians to leave the area because an attack is imminent.  Israel is warning its enemies in order to save as many civilian lives as possible.  Hamas and Hezbollah are hiding behind civilians so any attack on them can be called genocide with no consideration of how many of their own people die or are disabled.

There has never been another case when terrorist attack the civilians in a nation and the nation that was attacked was told they can't fight back and need to compromise with the terrorists.  The norm is zero negotiation with terrorists.

Israel isn't perfect, but they are being put in a no win position by people who want to wipe them out of existence. 

 Nobody ever said Israel can't fight back, that is a straw man argument.

But If a school shooter holds a bunch of kids hostage, the FBI doesn't bomb the school killing all the kids in order to kill the shooter and then say "it is his fault, he was using human shields."  Stop and  think about how psychotic and murderous that viewpoint is.  How have they have twisted your mind into accepting that psychotic view?  No, the FBI waits for a clean shot and tries to protect innocent people.

The reason is that psychologically healthy human beings care about innocent human life.

Clearly Israel does not.