Fair Negotiations?

I read both CNN and FOXNews regarding the "prisoner" exchange between Israel and Hezbollah. I have a few questions. I realize right and wrong seems to simply be decided by whom you agree with, these days, but I just have some basic math and government issues with this deal and I would like to voice my concerns. I'll begin by questioning the government, all three. Our President has listed Hezbollah as a terrorist organization, so I never did know why we didn't help our ally in 2006, when Hezbollah used the Lebanese government to protect them in the attack on Israel. When our President said he wanted to encourage the fledgling democracy in Lebanon, why didn't we step in and stop Hezbollah? Either way, whether it was as Israel's ally or supporter of Lebanon democracy, where was America in 2006? I mean, we already have the majority of our military in the Middle East, why not step into that situation and resolved it? Now, Israel received the remains of two soldiers that were injured and taken captive. No one but Lebanon knows when they died. As long as Hezbollah, a terrorist organization sits by free election on the Parliament of Lebanon, Lebanon is supporting terrorism, plain and simple. And today we can read from sources, both sides of the aisle, that these militant killers that were released were given a hero's welcome. Doesn't sound like this fledgling democracy has anything against terrorism. I still don't understand the double speak of President Bush. But then, I don't understand all the double speak he's spoken the last 7 years! Now that I clearly do not understand President Bush's stand in this situation, I truly cannot abide the thought that child killers are heroes in any country that supposedly espouses free democracy. Now, on to the next burning question. Israel, what in the world are you thinking? Knowing that Lebanon wanted Kantar released, and knowing the two soldiers would be returned in coffins, why would you give the big bargaining chip so quickly? And my next question should be obvious, even to politicians. What motivation does your enemy have for taking care of captive soldiers? You have removed the protection from your own potentially captive soldiers, by negotiating imbalanced negotiation deals for bodies. You are surrounded by enemies. If they get their terrorists back healthy, and you are willing to give them to get back remains, how is that showing loyalty to your military?
Now, mathematically, none of this makes sense. Two bodies for 5 or 500 hundred living terrorists is a bad negotiation. Hamas is already commenting and upping the ante. America has elevated both Hezbollah and Hamas from virtual unknowns to terrorists to political parties and Israel, you are still kowtowing to all three, hoping to benefit.
And shall say unto them, Hear, O Israel, ye approach this day unto battle against your enemies: let not your hearts faint, fear not, and do not tremble, neither be ye terrified because of them; Torah of Holy Scripture