Israel's blockade of Lebanon by land, air, and sea is quite effective (that's why Hezbollah wanted the 3 day "humanitarian" ceasefire that never happened).
In the meantime, Israel has killed Islamic Jihad bigwigs in the West Bank, Hamas bigwigs in Gaza, and appears to be raiding and shelling Hezbollah in Lebanon at will.
This is quite clever. Hezbollah is being blocked in, killed in place, and taunted/provoked to mount their own offensive...with all of the above alternatives equaling death and humiliation for them.
It is also a *cautious* strategy. Israel clearly believes that Hezbollah has some sort of lethal surprise weapon. By proceeding as outlined above, however, Israel risks very few troops to such a surprise weapon...while devastating Hezbollah (and Islamic Jihad/Hamas) as time passes.
This strategy also serves to test the Islamic Street...can "Radical Islam" continue to supply the old levels of suicide volunteers to Iraq/Afghanistan as well as ramp up against Israel?
Should "Radical Islam" fail this test, they will lose face across the globe for generations.