This entire thing is so bloody stupid. Israel has systematically abused Fatah being more moderate by building more and more illegal settlements in the West Bank. At the same time they removed settlements from the Gaza Strip ruled by the more radical Hamas. Anybody with half a brain therefore comes to the conclusion that Hamas extremely violent methods are working, unlike Fatah much more peaceful ones. Obviously this makes the Palestinians much more likely to attack Israel.
It would be extremely easy to set up camps outside of the Gaza Strip with proper sanitation and access to food. They would have to be in Israeli territory, but what ever. Then designate areas in the Gaza strip, allow everybody to go to those camps for a few days. Check whether there are Hamas terrorist in their and then allow them to return to their home. It would not be nice but neither was Hamas attack on Israel and taking hostages. Then make a bloody deal with the Palestinians and help Fatah to power.
Obviously the hatred would remain, but without fighting it can actually cool down. However it is very obvious that Israel wants to radicalize Palestinians to give them international cover for genocide.