You are right with your analysis. Olmert too has been a terrible leader but his Lebanon war was also a problem and too difficult for any Jewish Prime Minster to make the kind of decisions needed. What is needed is a new Israeli force made specifically to beat this problem with the right kind of weapons.Maybe weapons that put the enemy to sleep while they figure out who is who.
Some 200 settlers clash with police preparing to demolish illegal Beit El homes (Haaretz)
from the article: An Israeli defeat in Sderot