States are not rational actors. They are composed of a massive sum of parts, whatever seeming intelligence (in the biological sense of a creature reacting to its environment) that emerges is not necessarily the result of "rationality" (which is itself a fraught concept).

I don't think it is wise to assume that the Israeli high command is incompetent. Certainly, if any of us were placed in their situation, we wouldn't know how to do their jobs at all. Their actions may also be rational from their personal perspective. Deescalation of the war may even cost them their jobs. I don't know.

But the actions of the Israeli high command are certainly not "rational" from the perspective of the state. They are effectively playing chicken with their whole country. Their military is constantly eating losses and getting spread thin from all of these fronts. America refuses to directly intervene. And the Israeli economy is in taters.