I’m not sure how Hamas is expected to do these things. Gaza doesn’t have ports. Israel controls access to it. They can’t import raw materials to make finished goods. How on earth is Hamas (or any entity) supposed to improve Palestinian lives?
Netanyahu decided to contain Hamas by cordoning of Gaza and letting the two state option (a genuine, fair solution, not the one sided options already rejected by the Palestinians) wither away. What avenue for releasing pressure do the Palestinians have?
They can’t accept a one sided two-state solution. They can’t trade with the world. No one recognises their plight and bring them in as refugees. Like Barry Gander said on medium, terrorism is an antecedent - a result and a tool – not the precedent.
Take India’s example - they (we) defused the Kashmir issue by (a) holding elections (however flawed) (b) allowing Kashmiris to find economic opportunity in the rest of India and (c) promoted tourism Kashmir to bring economic growth in situ.
Is it enough? No, Kashmir is still a powder keg but has the temperature been reduced? You bet!