Clearly, Hizbullah has begun to play it's political hand internally in Lebanon. The people of south Lebanon are going to happily take the money provided by Iran and rebuild as best they can. Israel has been successfully demonized, as if they needed much help. By hurrying the rebuilding, Hizbullah gets back it's civilian shield. More cannon fodder for Israeli bombs.
I think Nasrallah will settle for nothing less than power sharing with the current government and integration of his fighters into the Lebanese Army. Iran will continue to have a strong ally in Lebanon.
We fighting break out again? It seems likely. Israel is in a bit of better position to root out Hizbullah now that they hold advanced positions and have been able to place many Hizbullah positions. But Israel is also behavior in an unusual way. They are treating the UN and other western powers with respect. They appear to be willing to adhere to their commitments. If they pull out despite Hizbullah intransigence, they are truly playing a different hand. Are they hoping for an invite into NATO with Turkey?
UPDATE: NewsDaily
Israel is prepared to disarm the Lebanese Hezbollah militant group if U.N. peacekeeping forces can't or won't, the Jerusalem Post reports.
WaPo
Hezbollah refused to disarm and withdraw its fighters from the battle-scarred hills along the border with Israel on Tuesday, threatening to delay deployment of the Lebanese army and endangering a fragile cease-fire.
The makings of a compromise emerged from all-day meetings in Beirut, according to senior officials involved in the negotiations, and Prime Minister Fouad Siniora scheduled a cabinet session Wednesday for what he hoped would be formal approval of the deal. Hezbollah indicated it would be willing to pull back its fighters and weapons in exchange for a promise from the army not to probe too carefully for underground bunkers and weapons caches, the officials said.
Thousands of Lebanese families again filled the roads leading south, heeding a call from Hezbollah that they return immediately to their often-shattered villages. Leaflets dropped by Israeli aircraft warned them to stay away, but cars loaded with children and household belongings streamed down the coastal road.
[...]Hezbollah activists provided money for the trip to many refugees leaving centers around the country. In his televised talk, Nasrallah promised they also would receive money on the spot to help them rebuild their homes, starting an immediate aid program for displaced people while the government was still holding meetings and appealing for funds.
The Lebanese army would like UNIFIL troops to deploy first in southern Lebanon and for the Israelis to pull out, which would then remove Hezbollah's reason for remaining there under arms, according to a government minister who spoke on condition that he not be named. Once Hezbollah's militia pulls back from the border zone, he suggested, the question of its full disarmament or incorporation into the army can be debated.
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