The Iranians are really upset, because that general was in charge of directing a Hezbollah war against Israel, and killing him screws up its timetable immensely.
When he was blown up, he was inspecting the anticipated battlefield. While in a convoy of three cars, what he was doing is called a “terrain walk”, a way for a field commander to familiarize himself with the “battle space”, so he knows where to position defenses, and the best routes for attack on either side, strong points, strategic ground, etc.
Yep, the Israelis threw a monkey wrench in that machine.
Yup.
He was very, very close to their corrupt leadership. The reason the they are going ape is exactly what you said. I also think his killing strikes FEAR into them. "If they could kill him.....then......"
Gotta love it.