The flotilla was clearly a PR exercise--no surprise there. And the Israelis blew it.

However, the real issue here is the current blockade of Gaza, which is counterproductive: the restrictions are capricious, and most goods that are prohibited have nothing to do with their strategic potential; it allows Hamas to divert blame for its own shortcomings; and it has resulted in a massive tunnel industry (including not only the tunnels under the border, but smuggling chains reaching across the Sinai, throughout Egypt, and into Sudan, Yemen, and elsewhere).

The net result is that it has become easier to smuggle weapons into Gaza than it was before the current draconian restrictions on civilian goods were introduced. I had dinner with a tunnel operator (and former weapons smuggler) in Gaza in January, who noted that while he used to get $5000 a container in the old days for bringing things under the border, he now only gets $50 because of the proliferation of tunnels. Indeed, some days of the month (when the Ramallah PA pays Gaza salaries) he earns more money driving a taxi.

Don't assume either that there is much sophisticated strategic thinking that goes into the restrictions, either: they're driven by domestic Israeli politics, bureaucratic process, inertia, and even capricious whim.

(image below: The Economist)