Looks like the Israeli political leadership, most likely Ehud Olmert, didn't have the courage to follow through. This whole thing was about Olmert proving he had stones as big as Sharon. (Shades of Fallujah in 2004 if you ask me.)
He doesn't. And innocent Israelis will suffer and die for his arrogance and gullibility in believing Halutz and his Douhetesque air war cronies.
Moreover, Israel's enemies will be emboldened, as the Lebanese unite in the face of this fiasco. That couldn't have been the purpose of this war, could it have been?
This is what happens when you believe your own lies.