Israel devastated Hezbollah's long range missile arsenal on the first days of the war, You are correct it didn't have a proper response to the short range missiles it fired on Israeli cities during day-time. You are mistaken on the ground as Hezbollah-IDF ratio was 6:1 in favor of Israel, and at the end of the war, which was forced by Islamic nations at the UN, Israel was already at the Livtani river, effectively all over southern Lebanon. It was a shame it didn't fully cripple Hezbollah and destroy Hezbollah's ability to terrorize innocents, but that hardly constitutes a defeat considering the blow Hezbollah and it's host, Lebanon, suffered. I think it's more adequate Hezbollah will not seek a Lebanon 3.
Death toll from car bombs in Iraq rises to 56 (AP)
from the article: Hezbollah 'refused Hamas request to bomb Israel in Gaza war'