As was inevitable, the commentary on Israel’s raid / high seas piracy / legal blockade enforcement / call-it-what-you-will has degenerated into a polarized flame-war between the blind and the deaf, which although very entertaining is also pretty useless*. By far the best analytical article on this issue I’ve found that really cuts through the partisan BS is The Limits of Public Opinion: Arabs, Israelis and the Strategic Balance, a free Stratfor article by George Friedman**.
The most fundamental point is that the current situation suits everyone just fine. The Arab regimes (and the Palestinians themselves) are weak and disunited and no longer represent the strategic threat to Israel that they did during the Cold War. Israel’s actions give them a chance to vent their fury to satiate the “Arab street”, but it is not in their interests to push the envelope any further. In turn, Israel is big enough to accept the verbal lashing in return for keeping its enforcement of the Gaza blockade credible. However, this Flotilla Affair may also presage much more significant long-term developments.