She gives two reasons for her refusal to condemn, neither of which make any logical sense.
The first is that Israel doesn't condemn its soldiers for killing civilians. The flaws in that analogy are obvious: as the Israeli ambasssador noted, Israelis don't celebrate dead Arabs. The IDF is not targeting civilians, as Palestinians target Jewish civilians. And in the specific example that Hass gives, of the Samouni family in 2009, the family happened to include members of Islamic Jihad.
The Hass makes another argument against condemnation, saying that the source of all violence is the "occupation." Even when IDF soldiers aren't hurting anyone, they are the source of violence. When the ambassador noted that this does not justify Palestinian terror, she demurred, but didn't explain the relevance of the "occupation" to the terrorism if not as a justification for the acts of terror.
We've seen her say these sorts of things in print, but hearing exactly how immoral she is from her own mouth is far more striking.