There are a number of ways of looking at this of course, but... It seems to me that the rationale for the attacks on people in Gaza was that these attacks would drive Hamas to stop letting people fire Kassams. Hamas now announces that it is willing to stop people from firing Kassams if Israel stops its attacks -- and Israel refuses to discuss the proposal. Then what purpose do the military actions serve? One could speculate that Israel just feels most comfortable in a situation of low-level warfare where the enemy's blows aren't really very painful. In other words, attacks on Arabs are an end in themselves. They don't serve a purpose -- at least, not a defensible one.
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from the article: Ehud Olmert rejects Hamas' offer of cease-fire in Gaza Strip