Israel has plenty of bombs. They have a shortage of interceptors for short range misses that hamas and hezbollah like to lob at them. This is why they would feel the need to establish a DMZ. They can afford to kick all their neighbors out, they cant afford to intercept rockets that would fly if they dont kick their neighbors out. So I agree with you, they will be more careful with the resources that are scarce.

Israel has nuclear weapons. If all their foreign backers pull out they would use them in an invasion scenario, so I dont think they need to worry to much about hot war with a legitimate government.

In every asymmetric war, the side with fewer resources has targeted civilians more. Or if both sides have few resources, both do it. It's expensive to carefully only attack military targets. For one, involves sending in soldiers to places they could've bombed instead.