Exactly.
Israel has cut off resupply, and reinforcements... basically these guys can sit in their tunnels and pill boxes and while they will probably be able to do some pot shot damage here and there, are basically trapped and will be weeded out by slow methodical movement of Isrealis and attrition.
In a perfect world, western troops would form a wall along the Iraqi border and let the israelis march all the way through Syria straight to the Iraqi border.. ending any real threat to stability to isreal from the north or Iraq from the east. Leaving Iran as the sole player to be dealt with in the region.. and with it surrounded on the east and west by western troops, will be rapidly subdued....
I know, I know.. won't happen.. but its certainly what should be happening if the civilized world is truly serious about winning the war on terror.
I agree with your strategy. I've often thought that W's long term stategery was to first surround Iran, and then go for the kill.