"Isn't there some sort of a limited EMP device that can be used to take out Hezbollah's communications?"
Yep:
Magnetocumulative Generator Warhead
http://www.softwar.net/emg.html
I suspect they don't want to take out ALL the communications yet.
Thanks for that info Backhoe. But what is the radious of the effect and how far back would Isreal have to pull back?