Typically in that Heavy urban warfare environment the great deal of the population has already evacuated.
Over 750,000 people have evacuated southern Lebanon. Most of the civilians have left the combat zone.
In areas where there are large numbers of civilians or innocents (non combatants) Bringing down entire buildings is a really really bad ida.
so yes, you have to go street by street,building to building, room to room. WWII style
Yes there will be some collateral damage. In war there always are.
But far less then if you bring entire buildings down with non combatants in them simply to get a few badguys
and yes you will loose more of your own men that way. But if you arent prepaired to loose men. Then you shouldnt be willing to conduct military operations to begin with
There is another option.
Surround the town, cut off all supplies. Absorb whatever strikes they try to send out and starve them out.
An full scale invasion by IDF ground forces would require Israel to mobilize all her reserves. Which, would have huge negative impacts on Israel's economy. A full scale invasion would also be seen as a major escalation by the rest of the world and by Arabs in particular, and could cause others to join the conflict.
If you put in multinational peacekeepers, any non-Muslim units would be viewed as Crusaders. Muslim units wouldnt fire on Lebanese or Palestinians to stop them from attacking Israel. (At least I dont see that happening).
There isnt a viable solution to the conflict in the Middle East. The Arabs wont be satisfied until Israel no longer exists. Muslims view the area known as Palestine as Muslim territory since it was controlled by Muslims for a few hundred years, they dont care that the Jews lived there for several thousand years before that.