Israel's biggest problem is the population issue. Time is not on their side when it comes down to looking at numbers of people and available land.

The strategic reality is that Israel is an anomaly in the post-WWII and now 21st Century world. It is very much the equivalent of a colony, implanted for a variety of reasons with and even larger number of agendas.

The situation reference "Palestinian targeting of civilians" versus IDF targeting is one of available means and achieveable effects. And it is also one of where the targeting is done, who is watching, and who is reporting. I can tell you personally that IDF targeting in Lebanon was hardly "surgical."

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.
The interesting point here is that the current situation is one of lost opportunities compounded by decades. The US has not done Israel a strategic favor through our policies of near total support. Israel and the Palestinians are both practioners of zero sum politics. The US role has never been effective as an honest mediator and both sides see that. Israel's "strategy" has been one of immediate tactical gains that do not necessarily arrive at a desired end state. The Gaza settlement fiasco is a classic case, repeating the Sinai settlement fiasco after Camp David was signed. The West Bank fiasco will be coming to a strategic theater near you at a date yet undecided.

Go back and read the following if you question where I am coming from at http://ksgnotes1.harvard.edu/Researc.../rwp/RWP06-011 It is worth the effort.

Best

Tom