Hezbollah has called for open war with Israel! If they honestly believe that they can defeat Israel, then they truly are insane. The more likely outcome is that they will finally draw Syria into an open conflict with Israel.
While no one wants to see war erupt, now that it is here, the best chance for peace is outright annihilation of the terrorist regimes (Hezbollah and Hamas) and their #1 sponsor, Syria. Israel should not stop until Hezbollah and Hamas have too few members left alive to fight another day. If Syria chooses to join the battle, then may God have mercy on their citizens. The Syrian government should be utterly destroyed.
By wiping out Hezbollah, Hamas, and Syria, Israel will have isolated Iran as the sole remaining sponsor of terror in the region. It will remove Syria and Lebanon as sources of insurgents in Iraq and bring to light the degree that Iran is both financing and militarily supporting the terrorists and insurgents in Iraq.
While engaging Iran directly would open up the Middle East War to its highest level of conflict in modern history, it may also bring about the greatest opportunity for lasting peace. No other nation stands at the forefront of terror, as does Iran. We have neutralized Afghanistan and Iraq. Neutering Syria and Iran NOW would come as close to putting an end to the War on Terror as any opportunity we are likely to see in the next 10 years.
These are indeed tumultuous times; however, we should not be too quick to jump into negotiations for peace. Israel’s opponents are NOT honorable! They will strike again, if Israel lets them live to do so. Instead of putting pressure on Israel to negotiate, the US should be putting pressure on Lebanon to disarm Hezbollah and for Syria to promise to stay within its borders. Neither promise is likely to be accepted, let alone kept by Lebanon or Syria.

Absolute and Total Victory by Israel over Hezbollah, Hamas, and Syria is truly our best hope for peace and an early end to the War on Terror.