Defending multiple small salients deep in enemy territory with no tactical or strategic military value is not only a waste of limited military resources but also limits the retaliatory options available to you.
You lose your head when you do not defend what is militarily important to your survival.
When you waste military resources defending every last square inch of ground regardless of its military value, you then get into the situation that Frederick the Great referred to.......You bleed away your resources and, in the end, you have defended nothing.
Israel is trading multiple small and extremely vulnerable salients with no military value for positions behind the Israeli Wall impregnable to an overland attack and is also making it possible to turn Gaza into a free-fire zone for Israeli air power if the need arises.
That's all true, unless G-d is on your side.
Everything you say is nullified by the victory you give the terrorists by succumbing to terror.
You lose your head and everything else when you tear apart your own as the enemy cheers.
I reluctantly agree with you here.