Sadly, I think you are naive to the reality in Palestine.
What if I'm not naive, and just realize that Israel is left with no palatable choices. They could kill all the Palestinians, but are obviously not doing it. Hamas militants deliberately hide among civilians, which is why terrorism is so hard to fight militarily without looking like cold-hearted bastards. Israel has decided that loosing a PR battle is less important than ending the threat that Hamas poses to their own people. Hamas is probably loving that they now have more dead baby pictures to show off as recruitment tools.