AbbaGav, in fine form, displays the trademark black Israeli humor with his solution to Israeli aggression: Proportionality Packs. One size fits all!
I actually have a very proportionate solution of my own to the problem of Palestinian Arab terror, and it is all based on the famous "land-for-peace" formula. Since the entire world seems to accept the concept of Israel ceding land for peace, it stands to reason that the converse should be true as well: if there is no peace, Israel should take more land!
Every terror attack should have a response from Knesset: one square kilometer of "Palestinian" territory will be irrevocably annexed by Israel for every dead Israeli, and it will be named for the victim. All the rest of the land will remain up for negotiation but the Palestinian Arabs would see their dream of a terror statelet dry up in direct response to every terror attack.
Israel can start with unpopulated areas, but it should be methodical and planned, one square kilometer at a time. The night of an attack, the fence goes up and the guards move over.
Given the Pavlovian nature of Palestinian Arabs, this would train the people very quickly not to support the terrorists whose actions are resulting in the exact opposite result than they planned for.
This would stop terror faster than any other "proportionate" response.