The problem with saying "both" is that there are 5 groups involved, maybe even 6.
- The Israeli government
- The Israeli people
- The West Bank Palestinian government (Fatah)
- The Gaza Strip Palestinian government (Hamas)
- The Palestinian people (arguably separate groups to account for differing levels of suffering and oppression)
I'd agree that "both" are bad if you mean the Israeli government and Hamas, though to different degrees at different times. I'd agree "both" are victims if you mean the Israeli and Palestinian peoples, though undoubtedly the Palestinians in the Gaza Strip are the most victimized right now and in general.