Hizballah are shooting missiles into Israel cities to generate fear and cause disruption, and untimately, to bring about compliance with specific religous, ideological and personal demands. Targets are societies to which these people belong (i.e. Israel. The are trying to weaken and supplant existing political landscapes through capitulation or acquiescence as opposed to direct military action. Basically the shoot missiles into Israel with intent to kill innocent civilians this is enough to be called terrorism.
Germany shelves Nazi crimes probe of US national Karkoc (AP)
from the article: ANALYSIS: Unlike '96, deaths of Qana civilians won't stop assault