Good point. There will always be religious extremists who use that as a rational to attack Israel. It is hard to navigate that line between defending oneself and violating the rights of those that are largely indistinguishable from those attacking you. Israel has done a **** job of this, which is exacerbating the very situation that they are trying to defend themselves from.
WRT whether or not Palestinian children will end up differently than German kids post WWII, that depends on a few factors. Despite the horrific attack of Oct 7, it wouldn't be that much of a reach for Palestinian children to understand that it was in no small part in retaliation for the way Israel has treated Palestinians for 50+ years. The human rights violations that Israel has committed since the occupation began will also help to radicalize them. The final straw will be when Israel changes absolutely nothing after the occupation (assuming their goal to eliminate Hamas is ever met to their satisfaction), except to maybe to tighten their grip more on the Palestinian people. It is easy to convert people to the promise of a better life when this one is ****! When you can point to the reason it is thus, it makes it that much easier.
Also, in past wars greater effort was made to avoid civilian casualties.