You make some very convincing arguments. Thank you for sharing those thoughtful views, I hadn't thought of the second or third points in quite that way.
One counter argument to your second point is that Hamas intentionally targets civilians; it is not an accident due to the inability to target military targets. For example, I'm sure you're aware of Hamas's support for the suicide bombings that occur. I have never heard of their suicide bombings being against military targets-- they are always against civilians to my knowledge, with the intent to cause the maximum number of civilian casualties.
I am aware that Israel has a draft, which means that every civilian-citizen is/will-be/has-been a member of the military, unless they evade the draft, and I would like to see Israel repeal the draft for this (among other) reasons.
Regardless, I still have no empathy for people that would
a) kill themselves for "the collective"
b) target civilians
Also, you might be on to something with the terraforming project! I think (hope) you were joking about nuking the region (as this would certainly cause more deaths than the current situation). But, if instead of sending money for weapons to our favorite allies in the middle east, what if we put that funding into expanding the Gaza strip into the Mediterranean sea and increasing clean-water supply?
There would be more land for the people of Gaza to live in and less disease/starvation, which I think is the major problem in the area.
But the politicians (both in the middle east and abroad), who gain their power through fear of the animal-enemy, will never let that happen. They are too afraid of being deposed to actually work for peace (also bribes from military contractors help, I'm sure).