For the dead IDF troops? They are dead. Not much that can work for them. 

As for the deterring power of bankrupting the terrorists' family....we shall see....Israelis just started this approach. At least Israel will collect the so called "martyr pension" that PA pays to terrorists. I assume some of the crazies will think twice before pulling the cord knowing they sign up their families for a lifetime of homelessness. 

My point was: these are no ordinary conflicts. What you see as extraordinary compensation, might not be.