It's for real. The Palestinians first denied it saying it was a doctors photo from the Jews propaganda team. A journalist found the family of the baby and they (being unaware of the upcoming controvercy) admitted it and then changed the story to it was a joke.
Doesn't surprise me a bit. You know if going to Allah and getting in on the 72 virgins is so great how come it is only 16 - 18 year olds turning themselves into a gooey mush. Why don't the so called leaders line up to do these things? Nothing but a bunch of cowards.