If the intent of Israeli operations were kill all of Hamas, Islamic Jihad, PLO etc. and damn World opinion - then small tactical nukes would be an answer. However, that is not their aim, for they recognize that they must still operate in the world after peace breaks out or hostilies subside. Therefore, "Heavy Handed" moves like last night are not helpful in the long-term politicial goals arena.
A little more intelligence, and they could have taken out this dirtbag with a sniper or a car bomb.
Many have suggested that Israel's restraint policy has only been interpreted as weakness and encouraged more attacks. By retaliating in "heavy handed" ways, a message is sent to the Israeli public, the Palestinian public, and to the Arab world. It could play out to the advantage of peace if Palestinians continue to weaken their resolve because of strikes like these.
They lost 23 men fighting in Jenin because of their concern for innocents. They simply cannot justify sacrificing 23 men for every 52 they go after in order to please the Europeans. All of Gaza is a lot like Jenin, dense and dangerous. Israel will have to use many different tactics to win, and this will unfortunately have to be one of them. In the future, perhaps people will not want to live near terrorist ringleaders. And of course the terrorist ringleaders, if they love their wives and children, will not want to be around them knowing a bomb has their name written on it.