Official confirmation from a country that devotes enormous resources to just trying to to get left alone:

The upgrading of Israel's military activity was necessary to achieve the goals of operation Cast Lead - to deal the Hamas terror infrastructure a crippling blow and to enhance long-term security for Israel's southern population... This upgrading of military activity was necessary to achieve the goals of Operation "Cast Lead" - to deal the Hamas terror machine a crippling blow and to enhance long-term security for Israel's southern population. It cannot be emphasized enough that Israel has no intention of reassuming control of the Gaza Strip. The expansion of the operation is intended solely to achieve its aforementioned goals.

The IDF isn't the only side lowering expectations. So far 30 Israeli soldiers have been wounded, two of them seriously but according to Israeli radio not critically. The IDF blog has this on the overnight operations:

During exchanges of fire overnight (Jan.3), dozens of armed Hamas operatives were hit by the IDF. IAF planes struck over 45 targets including tunnels, weapons storage facilities, mortar shell launching squads, and a number of mortar shell launching sites.

Meanwhile tanks have arrived at the outskirts of Gaza City - looking to find and destroy the rockets that have been terrorizing Israeli civilians for years - and Israel continues to allow aid to pour into Gaza. Which, as Eric Posner notes, won't stop the international community from making up anti-Israel international law as they go along. Because that's what they always do.

References and previously after the jump...