I feel that the wider political context of the current violence is being missed. I find the lack of compassion for the suffering of ordinary Palestinians disheartening. I also find the idea that Israel should put up with intermitant shelling of population centres and allow the growth of tunnels and terrorist infrastructure on its borders ridiculous.
The real issue here is the gradual weakening of Hamas and it's relationships with neighbouring Arab states primarily Egypt and it's inability to get money and arms from Iran due to the chaos in Syria. It has been unable to pay public sector workers for a number of weeks and public support for the political wing was on the decline following the closure of the Rafah crossing with Egypt and the Egyptian military's campaign of closing smuggling tunnels.
It's clear that the Egypts closure of the border tunnels has driven Hamas to make a statement. Hamas has suggested that a ceasefire can be achieved if the border crossings with Gaza have been opened. If they can achieve the opening of the Rafah crossing they will see it as a victory any captured Israeli soldiers or corpses they can trade for prisoners will be a bonus and increase Palestinian support for the political wing. If they can continue shelling Israeli population centres they will also show that they are strong and are a strategic threat to Israel. This will increase support for them in the Arab and wider Muslim world.
In terms of the Israeli governments reason for escalating the violence Is that they lack of strategic thinking and no plan to deal with the Palestinians beyond periodically attacking Hamas and other militants groups and degrading their military assets. They cannot smash Hamas like they did the regular armies of Egypt, Syria and Jordan etc and force recognition of and sign peace treaties.
They cannot destroy the ability to launch crude rockets from Gaza into Israel. They maybe able to eliminate the treat of long range rockets if they destroy or absorb enough rockets and Egypt keeps the border closed. The IDF will not have the time to survey and destroy the entire tunnel network. Any tunnels they do destroy will be rebuilt in a year or two. So this is a threat they will have to live with.
I think that ultimately the border crossing with Egypt will be reopened as part of a cease fire. This will occur as the death toll lurches towards 1000. Israel will achieve a period of calm in return. Hamas will reinforce its defensive positions in Gaza with renewed public support and restock it's long range rockets. Violence will breakout again in 2 to 3 years time.