Strategy Page argues that Hezbollah suffered a serious defeat in its month-long war with Israel:
The success of the ceasefire in Lebanon hinges on a condition that Lebanon and Hizbollah both insist will not happen. Hizbollah is supposed to disarm, but says bluntly that it will not do so. The Lebanese government says it will not force Hizbollah to disarm. So what's going to happen? It appears that Israel is going to hold the UN responsible for carrying out its peace deal, and disarm Hizbollah. To that end, Israel will withdraw its troops from Lebanon, and leave it to UN peacekeepers to do what they are obliged to do. But here's the catch, not enough nations are stepping forward to supply the initial 3,500 UN forces, much less the eventual 15,000 UN force. However, it is likely that, eventually, enough nations will supply troops. But many of those contingents may not be willing to fight Hizbollah. Israel says it will not completely withdraw from Lebanon until the UN force is in place.
The Israeli strategy appears to be to allow the UN deal to self-destruct. If the UN peacekeepers can disarm Hizbollah, fine. If not, Israeli ground troops will come back in and clear everyone out of southern Lebanon. At that point, it will be obvious that no one else is willing, or able, to deal with the outlaw "state-within-a-state" that Hizbollah represents. Hizbollah will still exist after being thrown out of southern Lebanon, and it will be up to the majority of Lebanese, and the rest of the Arab world, to deal with Hizbollah and radical Shias.
Hizbollah suffered a defeat. Their rocket attacks on Israel, while appearing spectacular (nearly 4,000 rockets launched), were unimpressive (39 Israelis killed, half of them Arabs). On the ground, Hizbollah lost nearly 600 of its own personnel, and billions of dollars worth of assets and weapons. Israeli losses were far less.
While Hizbollah can declare this a victory, because it fought Israel without being destroyed, this is no more a victory than that of any other Arab force that has faced Israeli troops and failed.
Michael Ramirez is also a little skeptical of Hezbollah's claims to have won their confrontation with Israel:
Hezbollah's survival of the Israeli onslaught is indeed similar to the survival of other Arab nations whose militaries engaged the Israelis. That the governments of Syria, Jordan and Egypt withstood the Israeli military in the sixties and seventies could be claimed to be "proof" that these nations fought the Israelis to a draw, but that doesn't seem to be an interpretation supported by the fates of their respective armies.
The big question raised by SP's analysis is whether an Olmert government will have the will to reinitiate hostilities when it becomes clear that Hezbollah has no intention of disarming or being disarmed.