You have said it all, with one exception. No doubt this happens because of the expectation of feeble consequences. We see it with Shalit and now in the North, controlled by Syria. This is a pivotal moment for Israel. They need to go back to 1967 borders, especially in greater Jerusalem and do it now, with acceptance of war declarations of Syria and PA.
Iran, on the other hand, is unlikely to embark on a "MAD" policy with geographically distant Israel (which, by the way, may have missile defense system) nor hand over weapons that important to a renegade proxy.
Never. Not negotiable.
I strongly disagree.
Iran and Israel will trade nuclear weapons in 2006.