Consider what the Israeli response might have looked like if they didn't have access to the munitions that they do (2000 pound bombs, etc). Likely they would have still invaded Gaza and fought a very bloody battle but with many fewer innocents killed at the expense of more of their own soldiers.
Essentially, Israel has made the judgement that the lives of their soldiers are (many times) more important than those of innocent people.
Also all countries military's inherently value its own soldiers over an advisory civilians. If I was a IDF general it would be my goal to minimize the casualties taken in securing what ever goal the political leadership sets forth within the laws of war.
Israel having too little “money, power, and resources” is not the reason Israel dropped nearly as many bombs on Gaza in the first six days of its reaction to the Oct. 7 attacks as the US dropped in the peak year of bombing in the Afghanistan war.
If anything contributed to that, it was a surplus of resources, not a shortage.
I think people often have a very magical feeling about what is possible military-wise. There is no way whatsoever to be significantly more precise in a densely populated area with tunnels, hiding behind civilians, etc.
I would say you are right about this. Maybe what is so shocking in this particular situation (at least for many people) is how little relative value Israel places on the civilians of their adversary. The recent reporting by +972 Magazine[0] on the Israeli decision making process for selecting bombing targets makes this clear.
[0] https://www.972mag.com/mass-assassination-factory-israel-cal...
It's been said that the Iron Dome saved more Palestinian lives than anything else in living memory because it allowed Israel to ignore Gaza (well, up till now anyway).
Be very very happy Israel has the tech to minimize civilian casualties and the desire to minimize them - things could have been very different.
Not to be facetious, but if I were to drop 1,000 bombs on a village of 100 people, killing them all, it hardly matters that I can claim my 'kill rate' was 0.1.