Israeli intelligence services are supposed to be some of the best in the world. They absolutely have the tools for a targeted response.
I agree, involving more civilians will just continue the unbroken cycle of violence, because that’s how you create new sympathizers for Hamas. You take one politically neutral Palestinian, and have family members murdered by Israel in response to an attack by Hamas, and boom, suddenly, not shockingly, they support Hamas. It really undermines solving the problem.
Israeli military has the tools to root out the individuals responsible, and I really wish they would turn to those tools instead of indiscriminate bombing.