Edward N. Luttwak writes in the Jerusalem Post that the Israeli performance wasn't as bad as it seemed because Hezbollah wasn't much of a threat:
There was a fully developed plan, of course, in the contingency folders - a sophisticated blend of amphibious, airborne and ground penetrations to swiftly reach deep behind the front, before rolling back, so as to destroy Hizbullah positions one by one from the rear, all the way to the Israeli border.
That plan was not implemented because of the lack of casualties among Israeli civilians. It had been a fair assumption that thousands of Hizbullah rockets fired in concentrated barrages would kill many civilians, perhaps hundreds of them each day. Barrages cancel out the inaccuracy of unguided rockets, and powerfully compound blast effects. That would make a large-scale offensive by more than 45,000 soldiers a compelling necessity, politically justifying the hundreds of casualties that it would certainly have cost.
Hizbullah, however, distributed its rockets to village militias that were very good at hiding them from air attacks, sheltering them from artillery and from probing Israeli unmanned air vehicles, but quite incapable of launching them effectively, in simultaneous launches against the same targets.
Instead of hundreds of dead civilians, the Israelis were therefore losing one or two a day, and even after three weeks, the grand total was less than in some one-man suicide bombings.
That made it politically unacceptable to launch the planned offensive that would kill young soldiers and family men, while not eradicating Hizbullah anyway, because it is a political movement in arms, and not just an army or a bunch of gunmen.
For that very reason, the outcome of the war is likely to be more satisfactory than many now seem to believe. Hassan Nasrallah is not another Yasser Arafat, who was fighting for eternal Palestine and not for actually living Palestinians, whose prosperity and safety he was always willing to sacrifice for the cause.
Nasrallah has a political constituency, and it happens to be centered in southern Lebanon. Implicitly accepting responsibility for having started the war, Nasrallah has directed his Hizbullah to focus on rapid reconstruction in villages and towns, right up to the Israeli border.
He cannot start another round of fighting that would quickly destroy everything again. Yet another unexpected result of the war is that Nasrallah's power-base in southern Lebanon is more than ever a hostage for Hizbullah's good behavior.