It makes it somewhat easier to be bad ass if you have unconditional support of the only super-power. With the level of financial and political support it is kind of funny to see the media in Israel barking at Kerry and the administration. Maybe it is just a mask?
IIRC, Serbs were pushed out of Kosovo for being way less aggressive while having historic claim to the land at least as good as Jews do.
Giving in does not seem to be an option for Israel. My Jewish neighbor argues that pulling out of Gaza in the first place was a mistake. Seems kind of self-evident today. On the other hand you have demographics working against you. There was a story few days ago about a middle-aged guy who lost his house and his workplace, but he managed to evacuate with his eight children, all eight in their twenties. Same day was another similar story, a town major who lived in a destroyed house with his four adult sons and their families. If families are having 5-10 children as a norm you will end up with a lot of hot-blooded male adolescents with nothing to do and Israel to blame.
Maybe another 6-day war would by few years of peace? But it does not seem like that can be repeated. Maybe if you nuke someone they will stop messing with you?