I dislike the UN. Because I had to work with them and saw how the sausage was made.
Normally, if the overwhelming majority of the world says "yeah, no" I would probably concur we shouldn't. In this case, it's a strictly a Israeli/Palestinian dispute. The rest of the world should encourage both sides to find some solution, but stay out of it so long as neither side is going insane. Contrary to the interwebz, Israel is not committing genocide. While they pull stupid stunts on a regular basis (settlers, etc), it's pretty tame on the normal level. They have both Arab and Islamic members of their parliament.
I'm pretty sure everyone is aware that Israel is about 90% likely to follow a deal it makes. Palestinians, maybe 10%. That's being generous. Folks are pissed that Israel won't fall over and die to make everyone else happy. Not saying I'm a huge fan of Israel, far from it. They've pulled a lot of stunts against the US, and I'm not overly fond of their government. But they're civilized. They generally have rule of law, decent stability and more or less first world human rights.
The opposition? Not so much.
Ergo, yes, in this case, we are correct in telling the world to screw off and pulling funding to make it clear.