Daniel Pipes, in my judgment one of the foremost thinkers and authorities on the Middle East today, offers cogent observations on Israel's psychology and foreign policy post 1993. I have posted an excerpt below, but please click the link to the article to read what comes before this excerpt. It's extremely important to read the whole article.
Decades of hard work before 1993 won Israel the wary respect of its enemies. By contrast, episodic displays of muscle have no utility. Should Israel resume the business-as-usual of appeasement and retreat, the present fighting will turn out to be a summer squall, a futile lashing-out. By now, Israel's enemies know they need only hunker down for some days or weeks and things will go back to normal, with the Israeli left in obstructionist mode and the government soon proffering gifts, trucking with terrorists, and yet again in territorial retreat.
Deterrence cannot be reinstated in a week, through a raid, a blockade, or a round of war. It demands unwavering resolve, expressed over decades. For the current operations to achieve anything for Israel beyond emotional palliation, they must presage a profound change in orientation. They must prompt a major rethinking of Israeli foreign policy, a junking of the Oslo and disengagement paradigms in favor of a policy of deterrence leading to victory.