The more you put somebody in a corner, the harder they're going to fight and the more desperate they will become. Likewise, the more the non-combatants in Gaza suffer economically, politically, and just in general daily life, the more people will be attracted to Hamas. That's why you can't just beat up on an insurgency with conventional force. Like I said previously, Israel is winning the tactical objectives but losing the strategic objectives. For you civilian types, that is saying winning the battle and losing the war.
This is the same strategy that lost the war in Vietnam and stretched the Iraq and Afghanistan wars on for years. If you aren't willing to meet some of the insurgent's objectives through negotiations, then you will never defeat them.