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The reason for the declarations of revenge and reprisals through proxy organizations is that both powers know that if they let things slide, the other side may try the next time to carry out an even bigger operation or assassination.
It is not a neutral, efficient, indispensable, or moderating force, nor can it simply be fixed by better oversight. It must be replaced for the sake of Palestinians and Israelis alike.
No one in Israel can guarantee that the captives will hold out for so long. The opposite is true: The way things are going suggests that the closer the IDF gets to the captives, the greater the danger to their lives will become.