This situation with Hezbollah will, IMHO, end in a massive war, with Israel re-entering Lebanon with tens of thousands of soldiers and possible Syrian and Iranian involvement. Why? Because Hezbollah has over 10,000 rockets capable of hitting Israel, they are dug in and trained very well, they have the "protection" of a sovereign nation (2, actually, since Syria is involved) and they are funded by Iran. In short, they think that they are untouchable, so they are unrestrained. The mere fact that they sent their people across the Israeli border to grab 2 soldiers is indicative of their mindset. To do this when Israel is involved with the Gaza situation is a very purposeful and calculated provocation, intended to put Israel in a tough position.
What Hezbollah doesn't seem to understand (or care about) is that Israel CANNOT back down. Olmert's government will fall if he does, so he cannot (and one would hope that Olmert has some vestige of patriotism and moral sense, rather than just a viewpoint of "how does this help/hurt my political career?"). Maybe this is what Hezbollah and/or its master, Iran, want...because this will take the world's attention away from Iran while it continues to enrich uranium and get new missiles from the escaped mental patient in North Korea.
Iran is pulling strings here, and Iran's leader has made it clear that he expects and wants war by 2007 - its the only way, in his twisted view, to bring the Islamic Messiah. There must be, according to this view, a vast conflict with the infidels going on at the time, with much devastation.
I am not optimistic. There hasn't been a general war between the Arabs and Israel in over 30 years, and in the interim Israel has withdrawn from South Lebanon under fire and given away territory to the Paleswinians in exhange for exactly nothing...so the Arabs think that Israel can be pushed further. However, like the Germans and Japanese in WW2 vs. the US, the Arabs don't know that there is a point at which the Israelis will be forced to push back - HARD.
They have always been counting on the US to keep them on a leash. Well the leash broke and the US doesn't appear to care. Bad news for the Arabs who mess with Israel. The bulldog of the Middle East has been set free.
"Who's more irrational? The guy who believes in a God he can't see? Or the guy who is offended by a God he doesn't believe in?" Brad Stine