The implications are horrendous. If we are allowing this, it has to be ended, immediately.
OTOH, I have a tendancy to reserve a lot of doubt - considering the exagerations that have been used throughout the intafadah, from Jenin on down.
Also, considering Palestinian treatment of suspected "collaborators" and intra-gang violence, there is a lot of reason to doubt that Israeli soldiers are responsible for a lot of this.
But if we are - G-d help us.