I agree largely with @mouthpipette's reading, though I wouldn't say "relatively harmless". The level of fire from Hezbollah has been immense - something like 13,000 rockets and UAVs during the course of the war. There have been few deaths on the northern border because Israel has great air defences, there is an alarm warning system and most homes have a protected room, and the towns right by the border have been evacuated - though for example in Majdal Shams, Kiryat Shmona and the Golani base we have seen what happens when the systems fail. The lack of deaths is not for want to Hezbollah trying, and they are trying pretty hard at the moment to hit civilian infrastructure too (how do I know? I live 50+ miles from the border and was woken up this morning again by sirens from a rocket attack targeting energy infrastructure in my area).
The damage around the northern border is colossal, and so is the societal impact of having 60,000 people evacuated from their homes and businesses. Even a year later there's a kid in my kid's kindergarten whose address is a local hotel being used to shelter displaced people, and everyone I know from the northern villages just south of the evacuation line is completely frayed from a year of rocket fire.
There has also been a strategic impact: one of Hezbollah's aims was to make sure a big proportion of the IDF would be tied up on the northern border dealing with the rocket attacks.
For Israel the big issue driving the present conflict with Hezbollah is the need to have the northern residents return to their homes. For this to happen, they need to be confident that Hezbollah is not sitting right on the border. A lot of posters here have ridiculed Israeli fears of a 7/10-style attack from the north, but the 2006 war with Hezbollah began from a cross-border raid and this time at least one Hezbollah tunnel crossing the Israeli border has been found.
I hope that there is a diplomatic solution rather than a military one. The international community needs to take implementation of UN resolution 1701 which requires Hezbollah to remain north of the Litani river seriously. It's all very well that 10,000 UNIFIL soldiers are deployed in the area, but they have been utterly ineffective in preventing Iran's proxy army from establishing very significant military infrastructure in the area. Southern Lebanon needs to be governed by Lebanon, not by Hezbollah.