A missile is a demonstration of military force. Everyone in the region knows Israel is capable of blowing up a building.
This is a "we've got you hopelessly compromised as an organization" sort of demonstration that's far more humiliating.
For a similar example, see the US response to 9/11 - two decades of war, taking shoes off at airports, etc. - versus the US response to COVID, which killed a 9/11 worth every couple of days, but resulted in a "but I don't wanna wear a mask" response.
> It's easy to sit online and make bold and vague claims like there will be armed escalation in retaliation.
I mean, that's the pretty standard response in this conflict. Permanent tit-for-tat, back-and-forth, for decades/millennia depending on how broadly you count things. For a concrete example, Iran's April strikes.
> What do you think constitutes a major escalation?
Terror attacks on Israeli assets abroad - I'd be keeping embassies/consulates on alert - and rocket strikes against Israel. At least enough to try to save face, although the Iranian strikes offer a "good luck" for that.
Do you think Lebanon will escalate by capturing prisoners? I agree that that could be an escalation given the context and history. That said, I don't know what a path to peace with Hezbollah looks like. It's hard to imagine Israel tolerating it imperfect ceasefire while Hezbollah continues to arm, given how that worked out with Hamas
I think that netanyahu would be very happy to see a de-escalation on the northern border and it would be a big win for his cabinet.