I think this story tells us a lot about the problems with the historic method of dealing with terrorists in the middle east:
A senior Hezbollah official said Tuesday the guerrillas did not expectto react with an all-out offensive after the capture of two soldiers, the first acknowledgment by the group that it had miscalculated the consequences of the raid two weeks ago.
He said Hezbollah had expected "the usual, limited response" from Israel after the two soldiers were seized by guerrillas on Israel's side of the border on July 12.
In the past, he said, Israeli responses to Hezbollah actions included sending commandos into Lebanon, seizing Hezbollah officials and briefly targeting specific strongholds in southern Lebanon.
Komati said his group had anticipated negotiations to swap the Israeli soldiers for three Lebanese held in Israeli jails, with Germany acting as a mediator as it has in past prisoner exchanges.
I think this story shows the problem very clearly. Hezbollah believed that they could continue this insane give and take indefinitely. That is to say, they could hurt Israel knowing that Israel would strike back, but they were in control of how much they'd get hurt. This is why "proportionate response" is such a stupid idea.