Surprise! Surprise!
The Israel Defense Force has discovered that Hezbollah has developed a defense in depth along the Lebanon-Israel border and they are a trained regular army, not a motley collection of guerrillas. They were stunned to discover that Hezbollah wears uniforms and has multiple techniques for taking out tanks.
Expecting the Lebanese army to disarm Hezbollah is absurd. After decades of civil war and the effects of both Israeli and Syrian occupation, the Lebanese army lacks the resources of the average American state police force.
The bulk of the IDF is formed from guys fulfilling their national service obligations while Hezbollah is a veteran infantry force. The Israelis are taking heavy casualties for a minimum gain going against Hezbollah on their home ground.
In addition to the RPG-7, Hezbollah probably has the Iranian version of the 9M113 Konkurs (NATO designator: AT-5 Spandrel) a TOW missile with a 4 kilometer maximum range.
There is no reason not to declare an immediate ceasefire. I’m more inclined to believe Hezbollah than Israel as far as observing the ceasefire goes, because Israel still hasn’t explained why the tank involved in the initial contact in this crisis is sitting in Lebanon, apparently destroyed by a Lebanese anti-tank mine.