The Iron Dome RADARs, command and control systems, and launchers are also expensive to obtain and maintain.
The point here is to reduce the cost per shot and increase the reload rate.
Yes, exactly correct.
It would be a lot cheaper to arbitrarily fire missiles into Gaza for every rocket launched into Israel from Gaza. You fire an aimless rocket at me, I'll fire aimless missiles back at you regardless of where it lands in your towns. Hamas would quickly give up firing rockets at Israel. Screw the "poor innocents" talk, because they don't care about Israeli babies and women civilians. Unguided rockets are cheap. Cheap Israeli guided missiles could do a lot more damage to Gaza if lobbed at arbitrary targets.