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Israel denied using WP during the 2006 war, when reports about its use stubbornly would not go away. Months after the war, Israel officially admitted that they had indeed used WP.
http://news.bbc.co.uk/2/hi/middle_east/6075408.stm
There can be no question that Israel is again using WP in Gaza. I've posted more than one CNN clip here. WP is being used as ground bursts for smoke, which is legal, but questionable in an urban setting. But to use WP as air-bursts, where burning WP is broadcast over several urban blocks indescriminantly, would by most definitions be a war crime, and certainly good evidence for the terrorism claim by GG. When visual evidence is broadcast worldwide by CNN, CNN international, and other broadcasters on live TV, it's hard to see how this usage can be described as "unconfirmed". This is not to mention the published photographic evidence in various news outlets.
Greenwald's reporting is overly tentative in this regard--given the published evidence. I'm reminded here of his reluctance when reporting Iraqi civilian casualties.
Also, a note on where and how WP burns, as stated in exerpted article. It doesn't just burn in contact with "air". It burns in the presence of oxygen. It will burn in a bucket of water. Similarly, once it burns into a human body, it will burn through the body and/or into/through bone.