In regards to prisoners exchange it is Israel who sets now the conditions not Hizballah.
Didn't aim israel would or wouldn't do it, just that was (at first) a must in this war:
http://www.haaretz.com/hasen/spages/739524.html
"The prime minister said that Jerusalem is not ruling out negotiating an end to the crisis provided that the terms of any future deal would rest on the basis of the recent declaration by the Group of Eight industrialized nations, "meaning, the immediate unconditional release of the kidnapped soldiers and the implementation of UN Resolution 1559."
http://story.londonmercury.com/p.x/ct/9/id/a202fb413a3947d7/cid/b8de8e630faf3631/
"Prime Minister Ehud Olmert told a U.N. delegation Tuesday that the disarming of Hezbollah and border security remain conditions of an Israeli cease-fire."
http://www.ynetnews.com/articles/0,7340,L-3276889,00.html
"The Prime Minister’s Office in Jerusalem stated that Israeli was demanding the Lebanese army deploy along the southern border to control Hizbullah. The PMO clarified that they had no intention for an international force be redeployed but Lebanon’s national army.
The statement read: “Resolution 1559 must be upheld, which calls for the Lebanese army to be deployed along the border and Hizbullah to be disarmed. This is our demand.” (Ronny Sofer)"
There are a ton of storeis out there, esp early on the Israel demanded disarmament as a result of this war. Right now, they seem to have lost that. Neither the Lebanese Army of the U.N./French are willing to do this job.
Israel demanded it, but it is not and (in all probability) will not happen. Again, how is this a victory?