For what it's worth, Israel's security doctrine appears to call for:

1) Physical separation from Gaza and the West Bank. This is a recent phenomenon, but one that has been fairly effective in reducing internal attacks.

2) Negotiation with various Palestinian entities. This has proceeded largely without results, as we are all aware.

3) Gradual displacement of the Palestinian civilian population. A controversial strategy - not officially pursued by the government at this time. Frequently undertaken by rogue Israeli citizens, with various governments cracking down or turning a blind eye depending upon the current political climate.

4) Retaliation. Not merely military, Israel frequently closes off whole towns to outside access for days at a time. Israel also controls a large portion of the Palestinian Authority budget and other "levers." Certain air strikes and other kinetic operations have been used for this purpose.

5) Limited kinetic operations. "Targeted killings," raids and other operations designed to attack armed enemies directly.

6) Intensive internal security measures. Israel has armed guards posted at shopping malls, along with the world's toughest airport security. A wide aray of checkpoints control movement and commerce throughout the West Bank and Gaza, as well.

Israel's strategy is limited by a number of "non military" considerations. First of all, the West Bank is home to a population of 2.5 million Palestinians (per the CIA World Factbook). It would take 50,000 soldiers in formed combat units to provide the "optimal" ratio of 1 soldier per 50 civilians. This would be just under 1% of Israel's population - for the US to field an equivalent force would require 2.5 million soldiers. Given the existing bad blood and mistrust on both sides (without taking a moral stand either way, simply noting that there are hard feelings here) this would be a very long and difficult operation, involving many casualties on all sides. Israel cannot support such a move economically. Their citizenry will not permit the many casualties that would result. Tel Aviv's unstable, coalition driven governments likely couldn't affect either situation. Additionally, intesnive international scrutiny would be brought to bear. Finally, Israel's neighbors are all Arab countries who would be seriously threatened by such a military expansion, regardless of the motives. In addition to state sponsorship of Palestinian factions, the governments of Lebannon and Syria are both sufficiently corrupt and/or weak that independent actors within those nations would supply considerable outside help.

Given that confluence of factors, a "traditional" counter insurgency will not be sustainable. That is not to say that it would not be effective. Both Israelis and Palestinians are human beings - war is a part of the human condition. Regardless of the brutality, uncivilized tactics or sheer emotion on all sides - the principles of war apply without consideration of the merits of the parties.

So that leaves an interesting question: what can Israel do? I believe the most effective course of action for Tel Aviv is continued withdrawal from occupied portions of the West Bank, and a continuing effort to shore up on or another Palestinian faction. Not only as a fighting force, but as an agency that can deliver governmental services, health and welfare to the Palestinian people with pride and dignity. Such a group does not exist as such, but it might draw considerable support. Given time, it could displace the armed factions in terms of popular legitimacy and ultimately be in a position to negotiate a mutually beneficial relationship with Tel Aviv.