I certainly understand the other side, or atleast I think I do. The problem is that the way I see it, there are TWO other sides - the leaders and the people. Both aspire to different things, and for the leaders in Gaza, Hamas, the safety and well being of its people is not the most important thing.
Those people may have elected Hamas a few years ago, but they did not 'elect' the internal war which then tore them into two - One part led by Hamas and one led by Abu Mazen. Now the half led by Hamas is stuck with them, and I'm not sure what they can do. Overthrow them? That would cost many lives as well.
One thing I do not agree regarding what you said is 'Their leaders have also tried to talk, reason without any success'. Surely for Hamas to be remotely reasonable and able to talk to Israel, it should accept Israel's existance and not continue to declare that it's target is to destroy it. How can we seriously talk to an organization which continues to say it wants us dead and buried? We ARE willing to co-exist side by side even without an official agreement, but things like no missiles on our cities and serious negotiations for an Israeli soldier they abducted 2.5 years ago are the bare minimum.
So there are no easy solutions, which isn't earth shattering news. However, you don't see Israel bombing the people led by Abu Mazen, and we have released hundreds of prisoners to his region over the past year, so surely that shows we have the right intentions, as long as the other side does as well.