The policy is meant to appease and appeal to the critics and haters. This Tiananmen Square crackdown will only weaken the Jewish state meanwhile an emboldened Islamic front with a vast array of antisemitic haters around the world will only intensify their attacks, de-legitimization and hate.
Tajshar2k: here are some examples of what Israel is doing to combat Jewish Terrorism: https://www.washingtonpost.com/world/israelis-hold-anti-violence-rallies-after-attacks-against-palestinians-gays/2015/08/02/c3df0fdc-9a6a-4922-ae60-7d2e2ecd5214_story.html
These methods also include raids in the occupied West Bank against those who are suspected to have been involved in recent attacks. http://thinkprogress.org/world/2015/08/12/3690923/israel-confronts-jewish-extremism/