If Israel, as stated by the pm himself and members of the war cabinet , gets the hostages and dismantles hammas then it would allow to form a better governing body for Gaza which more humane and more Palestinian focused than killing jews and digging tunnels.

Israel, contrary to popular belief isnt going to erase gaza out of the earth even when hammas is eradicated. Israel could erase gaza if they wanted. They choose not to in order to save Palestinian civilian lives.