They are diluted. It’s not a winning position in the short-mid term. In the long term, it’s also dangerous to Israel. If that isn’t obvious buy now, it never will be.
Israel needs to come up with strategic deterrence for Gaza. They need to tell Pestinians that for every rocket they launc ant Israel then Israel will send 100 dumb rockets in return. I doubt the Palestinians with launch many rockets after that a couple of tit-for-tat exchanges.