I never used this as an excuse for anything Israel's done. I'm just saying for Billy T or anyone else who thinks there's a magic solution, no solution no matter how well thought out is going to avoid enormous degrees of antipathy regardless. ... Just want to point out that nothing ever works exactly as planned in these kinds of situations. The defenses you would have Israel rely on might not work, or might get innocents killed by other means. In war, always expect the unexpected.
My suggestion is NOT magic - It is technology that can defeat the GAZA rockets, which has been tested for three decades in the defense of all NATO nations ships. Currently it is also being used to make the "Green Zone" in Iraq secure from falling mortar shells. - Proven defense against much more difficult to stop threats.
My suggestion also includes fences, mine fields backed up by a strip of "killer trained" dogs in case some very lucky terrorist gets over the fences, and thru the mine field. Note also tunneling under the fences and mine field would be detected by the deeply driven acoustic sensor spikes.
Then there is the deterrent aspect: With continuous integrated radar/ computer monitoring of all airspace - sort of like the 30 (or 40?) year old DEW line that stretched across Canada* the launch site of a Gaza rocket is known in less than 10 seconds (About when the CIWS is destroying the rocket high in the air) and in less than a minute artillery shells are shredding any living thing at that site. It surely would be something of a deterrent to see 100 % of your rockets explode high in the air (useless to have been fired from the terrorist POV) and then get the launch site quickly pulverized.
This immediate counter battery fire possibly will kill some innocent civilians picking oranges or olives in the first weeks of the NEW artillery policy but later will make most hostile towards the terrorist setting up launchers near them. - Currently Israel's policy is to randomly shell, as a deterrent possible launch sites with about 100 shells each day. (One went too far and killed a family making a picnic on the beach a few years ago and in the press conference telling the silly cover story that it was a mine planted by Hamas, the spokes person described this "defensive" routine, random-shelling policy. He showed a map giving the sites hit near that beach of 5 of the 6 shells fired that day in that area and within an hour of their deaths .)
My plan calls for this random shelling to totally stop - only shell launch sites ASAP. Soon the civilian population will learn that ONLY Gaza's launch sites are shelled and only immediately after rockets are launched. Few will welcome terrorists setting up launchers near them - Lets destroy the civilian support for the terrorist, not build it with random shelling using ~100 shells per day.
The unguided Gaza rockets have limited range and must be fired from the cover of orange or olive groves near the boarder strip Israel has bulldozed clear of everything (just open ground now) if they are to have any chance of reaching Sderot, etc. (Terrorists have fired 400+ since the Dec 2008 invasion which killed >3000 Palestinians and 13 Israel soldiers but only one has killed anyone - a foreign worker in a field less distant than Sderot from the launch site.)
SUMMARY: I am not claiming magic. Only that Israeli deaths from terrorist in Gaza, by all means (not just their crude generally ineffective rockets), can be greatly reduced with even 30 year old, well proven technology; but doing so would also remove the current justification for Israel's chosen High Kill Ratio policy.
These two camps of mutual hatred need to live totally separated and securely for about two generations, IMHO, before progress towards a real peace will be possible (Most of the haters must die in their beds first.)
The Future (> a decade) threat is essentially unstoppable: Black** balloons filed with contagious anthrax or Ebola spores drifting into Israel on moonless nights. If Israel continues the High Kill Ratio policy, instead of defense and a "live let live" policy, there will be plenty of volunteers willing to die launching them. - Why, not? - Israel allows them nothing to live for now, except getting revenge. Israel needs to switch away from their current policy and change that before it is too late, for Israel. Thus, what I suggest is also the long term defense Israel needs to survive, not magic.
* This computer/radar air space control is also used with anti-missile rockets, which are more capable than CIWS's bullets, to protect against longer range, guided missiles that may be launched from Lebanon, Jordan or Egypt also. The Gaza rocket are cheap (<$10) so can not shoot them down with these anti-missiles, which cost more than $50,000 each. I however do not discuss the defense against these more serious threats.
**Black to be less detectable and also to expand at sunrise by solar heating, which then with their then higher altitude bursts them - spores covering perhaps 10 to 100 square miles, depending upon the wind. Those launched from small boats up wind of Tel Aviv and Haifa probably need slow burning string fuses which reaches a small "firecracker" to burst the balloon.