Possible, but costs a lot of money in the grand scheme of things. Not annoying kind of lot, but meaningful in the scale of national military budget, even budget in general. And even that is only tested at relatively low scale rocket bombardment seen in current status quo. At larger scale attacks, we can say that rocket interception would get less effective, and material damages would be proportionally higher.
Israel is neither willing nor able to do them over most of the Islamic world - which is the preferred source of "militant purposes friendly" cash Palestine's resident terrorists get, as they have to put meaningful effort into appropriating "official" tax revenue for those purposes to not piss off all the aid agencies, and there isn't that much to appropriate anyway.
As for the local sources, the current system of strict import controls achieves a pretty similar effect at minimum possible international outrage fallout - even Russia, Turkey or Syria wouldn't admit to outright punitive expeditions.
The current status quo addresses this at least as well, and probably better, giving Israel more options of measures to counter infiltration, while demographically, that's a mostly a matter of Israel's internal politics in either case.