I know that the issues are complex and there are no simple solutions to anything dealing with the Israeli- Palestinian conflict. But if I were in charge or an advisor, this is what I would do.
I understand the Israeli need to strike back fast and hard. First of all, I would advise against it. I know that Hamas and other Arabs would see this as a sign of weakness, but I know just the opposite. Restraint is a sign of strength.
Secondly, the culprits of this brutal crime must be brought to justice. If possible, I would bring them to court, try them, and let justice take its course. I would pressure Abbas to continue to condemn the murder of innocents and make the P.A, help bring those suspects to justice. If he is a true leader, he can do no less. If all that can't be done, then I have no problem of killing them in the line of duty.
Lastly, I wouldn't have destroyed the homes of the terrorists by the IDF for a couple of reasons. As a parent, I know that I have little or no control over my teenage children let alone my adult ones. Why should the parents suffer even if they agree with the kidnapping and murder of the boys (thinking thoughts are not a crime) as long as they are not accomplices? At least officially, this affair has split the PA and Hamas and I think that is a good thing. Destroying homes will give the two factions the ability to unite against the unfair Israeli occupation. Moreover, up to now, the civilized world has sympathized with Israel. Destroying the homes may or may not be legal in international law, but certainly it gives the world an opening to sympathize with the "poor Palestinians" and ignore the righteous cause of the Israelis. I think it will be a P.R. disaster for us.
These are some of my thoughts as I sit in Jerusalem mourning those 3 boys.