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I have noticed that the goalposts defining Israeli victory have been unreasonable. 1) The Israelis must destroy Hezzbollah, which given the ability of the Hezzies to merge into the civilian population is impossible. 2) Even if the Isreali's destroy most of Hezzbollah's capabilities, they must do so without killing civilians, which is also impossible give the fact that Hezzbollah fires from civilian positions as tactical doctrine.
I will agree that Israel should have moved faster and stronger on the ground.
Finally I wouldn't view this as the finish, its just another move.

Based on many news reports direct from Israel, it was Olmert and his gov't (not the US or others) that laid down the goal-posts - i.e. destroy Hez, get back the two soldiers, and stop the rockets from falling into Israel (now and in the future)....

Likewise it appears that it was Olmert (much like Clinton in Bosnia) that nixed the IDF plans for a bold, quick and major land offensive - and insisted rather on an air war that was in the end unsuccessful.

As you note this is only round one, and Israel will likely get a second chance to complete the process