Mark, all and all your analyses is interesting and probably correct. The only question is in the numbers of fighters on each side. In this case, obviously, if so choose, the IDF can send a lot more soldiers to the area, who are well trained to fight just the kind of war that you described. Given that the Hezbolla has no more than 500 fighters in one location, it seems that they could simply be overpowered by the numbers of well trained IDF soldiers. There must be a reason why it is not happening and I don't think that anyone can second guess it.
India hangs only man sentenced to die for 1993 Mumbai blasts (AP)
from the article: Firepower versus brainpower