A 'Victory' to satisfy Arab (Muslim?) Pride

For those who don't remember, 1973 was the last time Arab Muslims rejoiced in the sort of "we didn't get our asses completely kicked so we won" manner shown by much of the Arab/Muslim public today.

Also for those who don't remember, there was a profound sense of disgust among much of the Arab public following the collapse of Iraqi Army resistance in 2003. Arab - and Muslim - pride is tied into any Arab effort against Western-based or modeled armies. In fact, I think one could argue that 'victory' against the Israelis in 1973 (at least in comparision to 1967...), the Russians in Afghanistan (regardless of the relatively minor role played by Arab Afghans), the ongoing insurgency vs. America in Iraq, and this 'victory' by Hezbollah all serve to build Arab pride. There is a pride in the jihadist, a pride in a developing "Arab" style of fighting that seems to so befuddle the West, and there is a growing pride in those non-state entities that have mastered this sort of fighting.

This likely does not bode well for Israel, the US, or most of the autocracies of the Middle East (other than the Arab-Muslim populist Mahmoud Ahmadinejad. Yes, he's Persian...but his style appeals to this new sense of Middle Eastern Muslim pride.

Did Israel bite off more than they could militarily chew when they chose to go after Hezbollah...and much of the rest of Lebanon in the process? Was there any way Israel COULD have achieved a strictly military victory under these conditions?

UPDATE:

As the dust settles, contrarian opinions regarding Hezbollah's victory arise.