I disagree.
First of all, Israel isn't going to lose to Hamas. Israel won't succeed in removing Hamas, but certainly will temporarily weaken Hamas.
What exactly does this mean? That's what all the mainstream pundits said after the Lebanon War in 2006. It could not have been further from the truth. The fact is that Hezbollah ended that war with more missiles than they had in the beginning. It was a complete failure, and so far so is this war. You can't win a war by bombing empty buildings and tunnels. Olmert seems to think that he can wage a war without producing any enemy casualties. It's time for a reality check.
Secondly, continued rocket fire from Hamas will not make Israelis more likely to want to surrender land to Hamas. It will have exactly the opposite effect.
This isn't the "greatest generation" of WWII, or the generation that won Israel's independence in 1948 or that beat five heavily-armed Nazi nations in 1967 at once. These are postmodern, secular Israelis who have been taught since childhood not to have any faith in G-d or His miracles. If Israel loses this war, the citizenry will be massively dejected and assume that it must do whatever Hamas wants if it wants to live. It will play perfectly into the hands of Olmert and Livni and Barak, who know that a massive psychological blow like this will greatly soften-up the nation for so-called "hard concessions".
Not thoroughly defeating and removing Hamas is a blessing
in disguise. An implacably genocidal and hostile Hamas is the greatest impediment to further suicidal Israeli concessions.
Not if the heart and soul of the public are so far gone that they will just roll over and accept that.