Eye for Eye is another way of putting it. The Pali’s are saying,” if we do bad stuff to you, we aren’t going to allow you to bad stuff to us”
An eye for an eye was intended to limit recompense to appropriateness. It was not about revenge. What the Israeli response should be is something so terrible that the Arabs would be afraid to ever do it again.
What you say is not applicable in this case. The attack on the mosque was a response by Jews to the destruction of Jewish homes by the Israeli government. Thus it was some Jews doing stuff to other Jews, and then the angered Jews doing something to Muslims. Not really "tit-for-tat" at all.