If this was indeed perpetrated by Israelis, rather than by Muslims seeking to exploit a fresh provocation, it is nothing more than irresponsible vandalism -- which leads to, you guessed it, yet more violent demonstrations on the part of Muslims. A peaceful response to anything just doesn't seem to be in the playbook. From CNN:
JERUSALEM -- Demonstrations broke out in three villages in the West Bank after graffiti insulting the Prophet Mohammed was sprayed on a mosque.
Palestinian security sources said seven people were wounded in Sunday's protests.
It was not known who sprayed the graffiti on the mosque in Nabi Eliyas, near the town of Qalqilya in the central West Bank.
Israeli military sources said the graffiti, in Hebrew, read: "Mohammed is a pig." The Israeli Civil Administration and army troops erased the graffiti.