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Why should the U.S. even participate to this extent?
It's a fair question. In an ideal world, perhaps one could say we shouldn't be.
But at this point, we've enabled and lent blind support to Israel for so long that the suffering of the Palestinians fuels not only anti-Israel hatred but anti-American hatred as well. It would be very hard to change that perception just because we suddenly become more neutral.
Islamic radicals have many grievances against the U.S. beyond Israel/Palestine (particularly our hegemony in their region). But resolving the I/P conflict would be a huge step -- perhaps the biggest -- in diffusing the fury and hatred that fuels anti-U.S. sentiment. I think it's in American interests to have a resolution of that conflict.