" It is Hamas who say they won't negotiate with Israel, NOT vice versa."
'Fraid not Mike - Israel has stated that they will not negotiate with Hamas - it was part of their excuse for behaving as they did following the breakdown of the last peace talks.
"The attacks against Hamas rocket launchers are acknowledged as legal"
The attacks against the Palestinian civilian population are not recognised as legal and are now being described as verging on War Crimes by the United Nations.
"According to the LAW, Israel would be within it's rights to continue the present bombing campaign indefinitely"
No it wouldn't, but it will continue to do so anyway unless outside intervention prevents it from doing so.
As far as The United Nations and war crimes is concerned, Israel has relied on the U.S. vetoing condemnatory resolutions in order to stay out of the human rights courts, though wether they will continue to do so remains to be seen..
The situation is comparable to Russia and China using their veto to protect Syria.
Jim Carroll