Nearly 13 years ago, then-Israeli Prime Minister Ehud Barak journeyed to Camp David to end the conflict with the Palestinians. With the approval of President Clinton, he offered Yasir Arafat an independent Palestinian state in almost all of the West Bank, Gaza and in part of Jerusalem. Arafat said no.

A couple of months later, the Palestinians put an exclamation mark on that refusal by launching the terrorist offensive that came to be known as the second intifada. Yet despite fact that it was the Palestinians who had rejected peace and who were engaging in terror attacks on Israeli targets, they were still portrayed in much of the Western media as the victims. While the process that brought about this perplexing reversal was complex, one particular incident became the symbol of this vicious distortion: the Muhammad al-Dura affair.

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The story promoted at the time by the Palestinian propaganda machine was that Israeli army fire killed a small boy while he and his father were seeking shelter from fighting near a Gaza checkpoint. Film footage provided by French TV made this tragedy an international cause célèbre and an official Israeli apology reinforced the Palestinian narrative and helped turn al-Dura into the poster child for Israeli beastliness and their own suffering.

Soon, however, doubts began to surface about the veracity of the claim of Israeli responsibility and the discrepancies and falsehoods in the Palestinian narrative were exposed in various Western outlets. Over the years, the initial story has been debunked in a variety of places. A German documentary proved that the shots that killed the boy could not have come from Israeli positions and French gadfly Phillipe Karsenty, who argued that the original report was false, was sued in the courts by prominent journalist Charles Enderlin (who had broadcast the initial lie) but ultimately vindicated.

Now it appears the Israeli government has finally caught up to the problem and issued what may be a definitive report that comes to the harshest possible conclusion about the al-Dura myth. As Haaretz reported:

Thirteen years after an exchange of fire in Gaza appeared to have resulted in the death of a Palestinian boy at the start of the second intifada, an Israeli investigative panel has found “there are many indications” that Mohammed al-Dura and his father, Jamal, “were never hit by gunfire” – neither Israeli nor Palestinian – after all.

The national panel of inquiry further claims that contrary to the famed report carried by the France 2 television network on the day of the incident, September 30, 2000, 12-year-old Mohammed al-Dura appears to be alive at the end of the complete footage captured of the event.

The Muslim and Arab world will no doubt reject any investigation into it that will not accept their narrative. But more troubling will be the answer from many in the West and even in Israel who will ask why anyone should bother with such an old story. For Israel or its friends to spend any time on this issue is a diversion of effort from the peace process.

But those who doubt the importance of debunking what has become a new version of the old Jewish blood libel are wrong.

There have been many good accounts of this affair, including an article by Nidra Poller published in Commentary magazine in September 2005. I’ve blogged about it on Commentary’s Contentions site several times.

Yet even before those were published one of the first Western accounts of the al-Dura affair got to the heart of this problem. James Fallows’s June 2003 article in The Atlantic, “Who Shot Mohammed al-Dura?” pointed out not just the fact that there was good reason to doubt the initial version of the story but that the facts wouldn’t change anyone’s mind because of the iconic status of the photo allegedly depicting the boy and his father.

Indeed, he seemed to suggest in a deconstructionist spirit that objective truth was itself impossible since both sides sought to create their own facts in order to prove they were right.

Fallows had a point about the intractable nature of this debate. But the problem here is that the lie about al-Dura isn’t peripheral to the widespread misperceptions about the overall conflict. If a mainstream media figure like CNN and Time magazine’s Fareed Zakaria can assert that Israel has never offered peace to the Palestinians, and get away with it, there is something profoundly wrong with the way our culture has accepted Palestinian lies as either reasonable assertions or even truths.

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Jonathan S. Tobin is editor in chief of JNS. He can be followed on Twitter, @jonathans_tobin.