i'm afraid most people will perceive this as a victory for hizbollah. this is normal. they are guerillas and guerillas win wars by surviving and forcing the enemy to quit, not by destroying the enemy. they also appear to have a lot of support in the shiite population in the south and they (the civilians) will see this as their own victory in spite of all the suffering, death and destruction. forget the hippie rhetoric about the civilians being the losers and the military being the winners even if there is some truth in that.
i expected this war to end in this way, though not quite this fast. i'm not sure this is the final chapter, but i hope it is and that people will start working on a long-term solution through diplomacy.