Has Israel not turned the other cheek for too long? Has Israel not tolerated continuous attacks on civilian targets? Yes, we have. We have been doing it for the last 8 years. The time has come to fight back.
What you're suggesting has been done before. Israel used to respond to each rocket launch individually by launching precise artillery fire back. Needless to say, it was effective only during a very short period. Now, the terrorists don't physically launch the rockets. They place and ready them, punch in a nice and long timer, and run as far as they can. Now that is true bravery and commitment to your people.
As for the rocket interceptors - you have to remember these are very simple rockets, which is what makes them so powerful. They're not easy to destroy using conventional methods. Some new methods are being developed now (several using laser technology), but there's no guarantee they're work on these short distances - and besides, they're not ready yet or in the foreseeable future. And that is without speaking of the time and costs of installing this complex system so that everybody is protected.
Currently, the only protection that's being offered is a siren. If you've even been to the area, you know that there are several balloons flying above. Inside lies an automatic system which detects rocket launches and gives a warning of about 15 seconds to the residents of Sderot, which is really not much.
So, in essence, what do you suggest Israel does to solve this problem?