From what I have seen of Israeli retaliation, they have never went beyond one-for-one, or an eye for an eye. The terrorists would, of course, be perfectly willing to make that trade. I was referring to a massive retaliation, meant as a punishment sufficient to stop the undesired behavior, giving the enemy something o think about.
The punishment sufficient to stop the undesired behavior was, say Sabra and Shatila camps. Was there any undesired behavior there afterwards? This is an illustration of what's needed - versus what is being done.