The Middle East Crisis

I admit that I have always been fascinated with the Israel story. I've read a good number of books and watched more news and shows about the Middle East situation than any of my contemporaries or people I know who do not work in embassies, and even I am sometimes perplexed where my interest is coming from.

Because of the volatility and sensitivity of the issue, I did not want to make any hard comments or write about the ongoing Middle east crisis. Unfortunately, I have decided to break that promise just this once because of the statement made by Hezbollah leader Sheik Hassan Nasrallah during an Al-Jazeerah interview:

"Only "indirect negotiation" will bring about the return of the two kidnapped soldiers, Nasrallah said.
"Even if the whole world comes down, they will not be able to return the two Israeli soldiers unless we have an indirect negotiation," he said.
After the soldiers' abduction, Hezbollah demanded Israel open negotiations on a prisoner exchange. Israel rejected the demand, saying it would encourage more kidnappings."

Does Hezbollah plan on regularly kidnapping Israeli soldiers inside Israeli territory until the Israeli government agrees to their demands of prisoner trade? Do they actually believe that they can blackmail a soverign government (although one they do not recognize) like Israel and the government will simply give in to their demands when they are viewed as terrorists?
Even if Israel did agree to a trade, their action will serve as precedent for future kidnappings where enemies of their government and people will take the example of Hezbollah and start abducting Israelis in wholesale to blackmail their government.

I know this may sound naive given the delicate history and relations of Israel and Palestine and Israel's Arab neighbors, but kidnap for trade of prisoners should never, in theory atleast, come to pass in any part of the world, in any circumstance.