Gaza

I think that Israel acted in the only way it could under the circumstances. There is no way they can allow capture of their military without retaliation. Turning the other cheek is all fine and good as long as you don't mind being wiped off the face of the earth little by little. It's important that it's known, loud and clear, that some things are not acceptable. And when you have the power, even though it may not be politically correct to use it, you absolutely will in order to secure your citizens.
The Jerusalem Post has a quickie analysis of what happened with Lebanon 18 years ago and how it relates now.

The BBC is on the story. Of course it's our fault.

Palestinian Prime Minister Ismail Haniya, of the governing Hamas party, criticised Washington for giving approval to the Israeli incursion.

Mr Haniya said Washington had "given the green light to aggression" and called on the United Nations to step in to prevent an escalation in violence.

and

Mr Haniya has urged the UN Security and the Arab League to move to end the crisis in Gaza.

"The Israeli occupation must put an end to its aggression before the situation gets complicated and the crisis gets worse," Mr Haniya said.

So the Prime Minister wants the UN and the Arab League to "do something to make them stop", but doesn't want to just give up this soldier.
Let's take a look at a couple of Arab papers...
I'm sure this link won't hold up overnight but Emirates Today from Dubai has their front page taken up with "School Ban on Mobiles may be lifted".

The Islamic Republic News Agency doesn't have a word about Gaza on their front page. (again, I have no idea how to link to a particular date's front page)
Don't hold your breath for help there Mr. Haniya.

Drudge has a report up saying that the al Aqsa have claimed to have fired a chemical weapon into Israel. No confirmation yet.

Drudge also has this article about Gilad, the kidnapped soldier.

Friends describe Gilad as studious, good at physics and a little shy.

If Corporal Shalit is killed while in the hands of militants linked to Hamas, any prospect of a rapprochement between Israel and a Hamas-led Palestinian Government will vanish for years to come, perhaps for ever.

(I pretty much thought that was over after Hamas was elected anyway)

Hamas officials have been captured now. Captain Ed has the scoop.

The arrests of the Hamas officials puts quite a different spin on the hostage negotiations now. Since Hamas has taken responsibility for the kidnappings and refused to intercede to release Gilad Shalit, and since the Palestinians keep committing acts of war against Israel, then their political leadership becomes fair game in war. Now that a few dozen Hamas leaders sit in Israeli jails, the terms of the kidnappers may be changing soon.

UPDATE: Good for the UN. Annan asks for the release of Gilad in order to not escalate the situation.

Mr Annan said he spoken to the Palestinian and Syrian leaders on Tuesday and the Israeli prime minister on Wednesday trying to obtain the release of the Israeli soldier and to defuse the situation.

"We need to be very careful, not only not to escalate, but not to expand the area of conflict," he said late on Wednesday.

The key to defusing the situation, he said, was the release of Israeli Cpl Gilad Shalit, who was captured in a cross-border raid on Sunday by Palestinian militants.

UPDATE: Well still no confirmation of a chemically tipped weapon landing in Israel, so I'm going with the Reuters/Drudge/my story was just a rumor.