I'm a firm believer in not letting the (aggressor, terrorist, criminal, etc.) determine the rules of engagement. One who pokes a sleeping lion with a stick should not expect the lion to simply poke back with a stick should he wake up. Any loser who thinks that terrorizing others is a good way to make a living should expect that every day is probably his last.
And yet that is the way Hamas wants Israel to react. I believe that the Irsraeli government has a moral obligation to protect its citizenry. And the only way to do that, where Hamas is concerned, is to completely destroy the threat. Not wound or severely cripple the Hamas orginization, but completely destroy it. Make sure, to the best of their ability, that Hamas is never seen on the face of this earth again.
I like your sleeping lion/stick analogy.