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You say: "What's beyond dispute is that, if Israel wanted to inflict truly heavy civilian casualties, we could, any time. In fact, we could just bulldoze Gaza into the sea. We haven't."
Just because Israel could behave even worse that it's doing now does not make what it's doing now OK.
I don't know whether Israel is deliberately targeting civilians or not, but even if you take Israel at its word that it is not, it KNOWS, by the densely populated rat-trap that Gaza has become, there will be many innocent people killed and injured.
But they do it anyway.
It seems clear that the only thing that would stop this slaughter was if Israel felt it was losing the PR battle. But they are currently winning the battle in Israel and its sponsor the US, even if not in the rest of the world and the UN.
It's this that so dismays wishy-washy liberals like me: the large-scale loss of innocent Palestinian lives seems meaningless to most Israelis (and many Americans) and is a perfectly acceptable consequence of their actions.
You can't help asking yourself: what sort of people are these? Do they have no humanity?