Success does not breed more terrorists. Nor does failure. Birth breeds more terrorists. These people have been conditioned for centuries to hate Isreal and the jews. It is not going to stop. Isreal civilians are considered to be nothing but targets too. Attacks are not limited to just Isreali military units. There is no distinction between soldier and civilians for the Muslim. Any Isreali, any jew is the enemy. I honestly do not care a bit about Isreal killing off a few civilians. It's sad, but for Isreal it is a way of life as every single one of their citizens are despised and marked for death by neighboring enemies. This shit isn't going to change. 500 years from now, barring natural disaster that sends all the Middle East under the sea, or beneath the Earth, this shit will still be taking place.
Personally what I am hoping for is that Iran jumps the gun and does some dumb shit to piss off Isreal. Then we can sit back and watch Isreal take care of all our Iranian concerns for us. If I were President I would tell the Middle East "if you can't get along then you need to get it on". And then watch Isreal just blow them all away.