Islam has nothing to do with terrorism.
It's just very convenient for certain people (non-islamic, by the way) to stir arabs into religious frenzy. By offending religious sense of all arabic world one could never hope for any peace there.
What will young arab children in Lebanon learn from their teachers? That killing is wrong? That jews and arabs will have to learn to live together? No, they will learn that jews are bad because they've bombed their school/home. They don't care about the causes of the war. Neither they care for Hezbollah, Government and other adult matters. They just want to go out and play. They should be taught how to be tolerable and not how to hate. By bombing arabs jews would accomplish nothing but raising another generation of jews-haters.
There are much more arabs than jews in the Middle East and Israel might run out of bombs but it won't kill all arabs.
It's good there are USA which support Israel pouring huge amounts of money in that boiling pot every year, but what will jews do if USA due to some worsening of economy reduces or stops completely the funding of Israel? I'm afraid that in this case Israel will simply cease to exist.