The policy of punish, punish, punish is Sharon's tactic to keep the Palestinians committing attrocities. The Israel Inc propaganda machine then swamps every available media channel with poor jew bad arab stories, while nobody gives a toss about the palestinians who have been killed and injured in the provocation.
If the palestinians should revert to peaceful means, their case would be undeniable. Sharon must keep them blind with rage committing and supporting terrorism at all cost - even at the cost of his citizens.
Ratchet up the level of animosity but it just buys a bit of time. Rope in the dopey seppos who want to use the same "War on Terror" facade but they just stuff it up and give the game away - Sharon is a vile little "evildoer" whose team of cynical thugs will bring Israel down.
