I'm not sure I'd call Israel a terrorist state, but absolutely an apartheid state.
If you live in Gaza, you really don't have a lot to lose by attacking Israeli non-combatants, because you have no hope, and the Israeli gov't keeps going farther and farther to the right. Gaza looks a lot like the Warsaw ghettos prior to rounding all the Jews up and murdering them. The uprisings in the Warsaw ghetto were punished with the same kind of wildly disproportionate force as we're already seeing Israel use against Gaza.
Hamas and Palestinian militants were, and are, wrong to target and murder non-combatants. And, at the same time, Israel has been doing exactly the same fucking thing for 20-odd years now; from 2008 through 2020, more than 120,000 Palestinians--mostly non-combatants--were wounded or killed by the Israeli military. In that same time period, 6,000 Israelis were wounded or killed by Palestinian militants.
Israel can not claim to be a democracy, because they refuse to give Palestinians a voice in government at all.
As an aside, the parallels between how Israel has treated Palestinians, and how the US has treated Native Americans is uncomfortable.