UH, Israel does not talk big because it thinks the US has it's back. As wishy washy as our politicians and even our people are, I would barely trust us Americans as far as I could throw them, to do so is to invite destruction.
Israel did not start the war of 1948, The UN created Israel (or re-created it), Israel offered all Arabs within her borders citizenship, the Arabs rejected that offer and went to war and promptly got their butt kicked. They tried again in the 50's, again in the 60's and again in 1973. Granted in the 1967 war, Israel launched a pre-emptive strike on the combined Arab armies.
So overall, Israel has done quite well for herself on her own much to the hatred of all her sworn enemies. She producers massive numbers of Nobel winners, her economy is basically self sustaining, she made barren desert actually support life, yet the Palestinians (not really a true nationality) cannot seem to do anything on their own even though the world has pumped billions into the area strictly for them.
If I ran Israel, I would build a nice fat wall, declare Palestine a sovereign country, cut off all water treatment, sewer service, food shipments (unless they pay for it), electrical power (unless they pay for it) and stop hosting jobs for the Pals. It would be up to the Pal Govt to provide those services. I would also state, that the first bullet, rocket, mortar shell that came into Israel would be viewed as a declaration of war and would be met with maximum force, no running to the UN, just flat out war. And I would not risk a single Israeli soldier in that war, I would commence artillery shelling until they begged for mercy. If the civilians don't want to become casualties, leave quick. I would use a rolling barrage starting at one border of Palestine and start walking it to the other border, people can flee before it gets there or stay and take the abuse. And once they leave, they are not coming back.
I would give the peaceful Palestinians about a week max before they started a war by doing one of the above. Face it, the Palestinians have tried to take over or destroy every country that ever hosted them. Jordan, Lebanon are the first to come to mind.
But almost all of your options are a almost certain destruction of Israel.