>>I imagine that's about what the Israeli Government thinks of Palestinians.<<
You tend to do a lot of imagining don't you. You imagine there's no terrorist threat and you imagine you know something about Pakistani politics, and you imagine terrorists tell the truth.
No, I don't do much "imagining" as you describe it.
I am by no means an expert on Pakistani politics, or even very knowledgeable. I know a little about Nawaz Sharif, Bhutto, and Musharraf from reading and a couple with whom I am good friends and one happens to be Pakistani. If anything, I'm knowledgable about some recent history in the region, but by no means current affairs in Pakistan.
Secondly, there is a terrorist threat. In fact, there was one long before September 11th, 2001. The point is that it isn't much of a threat and should be weighed accordingly. More than that, groups like Hamas and Hezbollah existed before al-Qaeda and it does no good to simply lump all militant groups of the Middle East into one faction. When a nation acts as the Israelis have they are going to be met with the response they have received. The same goes for the United States. Imperialism has consequences.
Lastly, there is no "believing the terrorists tell the truth." Israeli soldiers do shoot Palestinians. They've also fired tank rounds, artillery shells, and dropped bombs into the Bantustans indiscriminately. All you have to do to understand that is open your eyes and look at the photos of the aftermath. You can live in the fantasy land of some 50's western where Israel is the good marshall and the Palestinians are dirty outlaws, but in the real world it is not so black and white.