I dont expect that the IDF has any Phalanx systems, but it seems to me that they would be effective, but there would essentially have to be one about every half kilometer on the border. The Phalanx is basically the same gun that is in the Warthog.
http://www.fas.org/man/dod-101/sys/ship/weaps/mk-15.htm
All this being said, I restate, I dont think Israel has these, and I know they dont have them set up on the border.
Israel has the Phananx, but the Phalanx is a naval system. There was one on the Saar corvette that was damaged by the Silkworm missile. However, I have never heard of a land-mounted Phalanx system. It certainly would not have the range to protect much (Phalanx engagement range starts at about 2 miles...).
Israel has missiles that might be be able to intercept a rocket, though it could be (as another posted) that these rocket's trajectories are outside the parameters for engagement by Arrows or Patriots. In any case, these missiles are VERY expensive, and deploying them against 122mm rockets that are lauched scores at a time, would be stupid and wasteful.
I was wrong about the laser. A laser is being TESTED but has not been deployed. The test rounds that they shoot at are the same sort of 122mm rockets Hebollah uses.
In any case, there is no way that Israel can mount an effective defense against these rocket, except by exterminating the people the launching them.